Transcript

CSIRO
C S I R O
A n n u a l
R e p o r t
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Annual Report 2000 - 2001
w w w . c s i r o . a u
CSIRO – the Commonwealth Scientific and Industrial
Research Organisation - is one of the largest and most
diverse scientific institutions in the world. It has a staff
of over 6 000 located at 60 sites throughout Australia.
CSIRO is an independent statutory authority constituted
and operating under the provisions of the Science and
Industry Research Act 1949 and the Commonwealth
Authorities and Companies Act 1997.
Enquiries
Tel 1300 363 400
Email [email protected]
Web www.csiro.au
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Letter of Transmittal >>
Senator The Honourable Nick Minchin
Minister for Industry, Science and Resources
Parliament House
CANBERRA ACT 2600
We have pleasure in submitting to you, for presentation to Parliament, the fifty-third Annual
Report of the Commonwealth Scientific and Industrial Research Organisation. This report has
been prepared in compliance with the requirements of the Science and Industry Research
Act 1949 and the Commonwealth Authorities and Companies Act 1997.
We commend the Organisation’s achievements to you.
D Charles K Allen, AO
Geoff G Garrett
Chairman of the Board
Chief Executive
September 2001
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Board resolution >>
The 2000-01 CSIRO Annual Report has been approved for presentation to the Minister for
Science, Industry and Resources.
Signed this 3rd day of September 2001 in accordance with a resolution of the Board
Members.
D Charles K Allen, AO
Geoff G Garrett
Chairman of the Board
Chief Executive
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contents
Page
Letter of Transmittal
iii
Board Resolution
iv
SECTION 1: VIEWS AND INFORMATION
1
Chapter 1: Foreword by the Chairman
1
Chapter 2: Foreword by the Chief Executive
3
Chapter 3: About CSIRO
5
Enabling legislation
5
Functions and powers
5
CSIRO Board
6
Service Charter
7
Structure, management and staff
9
Organisation charts
10
CSIRO locations
12
Senior staff and addresses
13
SECTION 2:OUTCOME, OUTPUTS AND PERFORMANCE
17
Chapter 4: CSIRO’s outcome
18
Chapter 5: CSIRO’s outputs
19
Chapter 6: CSIRO’s performance
26
Introduction
26
Sector profile
28
External earnings
29
Publications, reports and patents
31
Research Training
33
Customer satisfaction
33
Adoption and impact of research
35
Manufacturing, Information and Service Industries
36
Minerals and Energy Industries
51
Environment and Natural Resources
57
Agribusiness Industries
64
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Chapter 7: Chief Executive’s special projects
76
Chapter 8: Awards and Honours
81
SECTION 3: THE FUTURE
88
Chapter 9: Strategic Action Plan
88
SECTION 4: SUPPORTING THE SCIENCE
94
Chapter 10: Corporate Governance
94
Chapter 11: Support Activities
97
Human Resources Management; occupational health
and safety, and people development
97
Environmental Management
99
Finance and audit systems
100
IT Services
101
Communication and education
102
Property and security
104
Strategic planning and evaluation
104
Legal and Intellectual Property
105
SECTION 5: DEVELOPMENTS SINCE 30 JUNE 2001
107
SECTION 6: FINANCIAL STATEMENTS
108
Appendixes
150
1. Sector Advisory Committees
150
2. Cooperative Research Centres
164
3. Statutory reporting requirements
166
4. Functions and powers of CSIRO
169
5. Administrative Law Reporting Requirements
171
6. Gene Technology Position
174
7. Trust Funds
175
Index
178
Further Information
184
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1: Views and Information
Chapter 1
Chairman’s Foreword
At the start of the new millennium CSIRO embarked on an ambitious strategy to
help build Australia as an innovative society, in partnership with industry, government
and other research bodies. This Report describes our first steps in this strategy.
2001 is the 75th Anniversary of CSIRO and its predecessor CSIR. We have given
75 years of service to Australia through research, with an amazing record of
achievement. The Anniversary is being celebrated by a number of activities, including
a book recording significant events, a pictorial history, an anniversary website and
open days around the country.
It is also the year in which we welcomed Dr Geoff
Garrett as the new Chief Executive of CSIRO, bringing
with him a wealth of experience from our counterpart in
South Africa. Dr Garrett has already unfolded his vision
for the future of the Organisation after completing a
significant review of CSIRO’s operations.
During the year, Ms Catherine Livingstone, former
Managing Director of Cochlear Ltd joined the Board
and two Deputy Chief Executives, Dr Colin Adam who so ably steered CSIRO for a year after the death
of Dr Malcolm McIntosh - and Dr Chris Mallett, left the
Organisation. Both had been deeply involved in the
mid-nineties in the major reorganisation that introduced
the matrix structure in 1996 and we thank them for their
great contribution over many years.
In the field of science, CSIRO continued to be recognised
at the highest level with Dr Jim Peacock and Dr Liz
Dennis being awarded the inaugural Prime Minister’s
Science Prize in October 2000 for their work in plant
molecular biology and Dr Rob Evans winning the
international Marcus Wallenberg Prize (our second) for his
work in forest products technology. These are just two of
many major awards gained this year which recognise the
excellence of the work of CSIRO researchers. Chapter 8
lists our key awards and recognition.
During the year CSIRO established an annual lecture
which has been sponsored by the Members Australia
Credit Union (MACU) to commemorate our former
Chief Executive, Dr Malcolm McIntosh. The first Malcolm
McIntosh Memorial Lecture was given in Canberra
on 23 April 2001 by Dr Peter Raven, Director of the
Missouri Botanical Gardens, USA.
In August 2000 the Prime Minister, the Honourable John
Howard MP, opened Discovery, the first science centre
dedicated to Australian research and innovation.
Discovery, based on Black Mountain in Canberra is a
unique concept, housing an interactive exhibition of
leading edge CSIRO research as well as the Science
Education Centre, a lecture theatre, café and
glass-walled laboratories through which visitors can
see scientists at work. Discovery is sponsored by Cable
and Wireless Optus, CSIRO and the ACT Government.
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In other initiatives during the year CSIRO established
a multi-Divisional project bringing together several
strands of biotechnology research focused on improving
our understanding of the ecological implications of
genetically modified organisms. The $3 million, 3-year
project is one of the activities under the Government’s
National Biotechnology Strategy, being partially funded
by the Federal Government to allow better informed
and more factual debate on the use of genetically
modified organisms.
CSIRO was involved in the Olympics as a member of
the Olympics Co-Ordination Committee in the earliest
planning stages for the games right through to the
closing ceremony. CSIRO was an original contractor
to the Mirvac/Lend Lease consortium that had
responsibility for the design and development of the
Athlete’s Village. CSIRO’s advice and technologies were
used in many other ways throughout the Olympics.
In January 2001 the Federal Government introduced
its Innovation Action Plan Backing Australia’s Ability.
The Plan, which was warmly welcomed by CSIRO,
addresses three issues vital to Australia’s future:
substantially increasing investment in research,
boosting incentives for industry to innovate, and further
encouraging team-based consortia approaches based
on merit. We look forward to enhancing the level of our
cooperation with the universities through this program,
helping to build Australia’s innovative capacity by
greater involvement with small-to-medium firms.
As reported last year, a Government Property Review
determined that CSIRO must sell six of its properties.
To ensure these sales have no adverse impact on
CSIRO’s research activities, the Government agreed
that CSIRO will receive Government funding for
additional sale and ongoing rental costs as part of its
budget appropriations. The first sale, of our North Ryde
property Riverside Corporate Park, was concluded very
satisfactorily in June 2001 for a price described
as a record for the North Ryde area.
In November 2001 my five year appointment as CSIRO
Chairman ends. They have been five very exciting years.
Following the sadness of Malcolm McIntosh’s illness
and death last year the Organisation has been
reinvigorated by the arrival of our new Chief Executive,
Dr Geoff Garrett.
In 1996, my first year as Chairman, CSIRO’s matrix
structure was formally implemented, since then great
progress has been made in bringing stronger interactive
teams together. It is the ability of CSIRO to bring such
teams of outstanding scientists together in a managed
structure to focus on a particular problem which is one
of its unique strengths.
There has also been an increased emphasis on trying
to commercialise more of our technology but no one
should ever believe that this is other than a very
difficult exercise. The balance between our role as
research scientists doing fundamental but focused
research and the commercialisation of our discoveries
will continue to be a major challenge. There will
always be pressure on the allocation of our funds
between pure research and initial development of our
ideas but I believe it is important that CSIRO grows
over the coming years, not only through increased
appropriation but also through our commercial links.
CSIRO is a focused and structured research
Organisation, which has a legitimate and important role
to undertake for Australia. There is close interaction
with the universities with whom we collaborate so
much both directly and through the over 40 CRCs in
which we are major participants. This year marks the
expenditure in total of $1 billion by CSIRO on the CRC
Program, evidence of our strong commitment to CRCs.
Each of us, CSIRO and the universities, has its own
important but primarily different role; together these
two roles provide a great intellectual advantage to
Australia.
The years ahead for CSIRO and its new Chief Executive
will be exciting, hard work and rewarding. The new
vision for CSIRO will require many changes but
I believe these changes are essential if CSIRO is
to continue to serve national needs effectively.
My best wishes go to the Organisation and to all
who serve in it under its new management teams.
D Charles K Allen, AO
Chairman of the Board
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Chapter 2
Chief Executive’s foreword
Trailblazing the Future >>
Dateline: October 2010. Australia is emerging as a global leader in sustainable
solutions to world and regional challenges. Its know-how is reversing desertification,
deforestation and salinity round the globe. It has an international name for safe,
nutritious foods, finding and processing minerals cleanly and efficiently, unleashing new
sources of clean energy.
Australians are living longer, healthier and more productive lives. We are at the leading
edge in the global information and communication revolution. Our forests, soils, waters
and landscape are regenerating their richness and diversity. Air pollution and greenhouse
emissions are dwindling.
Knowledge exports now earn $25 billion a year and have created over one and a quarter
million new jobs. Leading the transformation is Team Australia, a partnership of the
nation’s universities, CRCs, CSIRO and high tech firms, with 10 000 of the nations best
minds linked at lightspeed in a revolutionary network.
This forecast isn’t fiction. It’s a snapshot of our future,
the logical outcome of Australia’s national investment
in science, technology and innovation, a decade from
today. The foundations are laid. The process has begun.
Firm national will and a commitment to growth in these
areas will make it a reality.
In this annual report for 2000-01, CSIRO details
achievements and work in progress, as our partners and
we help to reshape Australia as a knowledge economy
of the future. We also celebrate 75 years as the national
science agency - a foundation of remarkable Australian
science and technology on which we are building the
future.
At the heart of this is our own reinvigorated vision,
expressed in our strategic action plan A New CSIRO
for a New Century. (See Chapter 9).
This plan describes our purpose: “By igniting the
creative spirit of our people, we deliver great science
and innovative solutions for industry, society and the
environment.”
We envision CSIRO helping Australia in the achievement
of three great national goals:
■
a healthy country - for both our environment and
people
■
winning industries - competitive with the world’s
best, and providing better jobs
■
a know-how nation - founded on the discovery
and practical application of Australian knowledge.
This report, and its partner document Creative Solutions,
highlights scores of cases in which this vision is
becoming real, such as the commercialisation of our
award-winning Align 3D technology for planning national
highway and rail systems by the cheapest, most
effective routes. Our intelligent freight transport system,
ITS Connect, is designed to cut the $5 billion cost of
traffic congestion and freight delays.
Our hybrid energy project is demonstrating the potential
to power Australia’s great cities with natural gas and
sunlight, while banishing pollution and greenhouse
emissions. Our hybrid cars, Axcess II and the
ECOmmodore, are also blazing a trail towards clean,
green transport.
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The $US300 million sale of Sydney firm, Radiata Pty
Ltd, to US giant Cisco highlights the value of CSIRO’s
world-leading integrated wireless network technology,
while our multibeam antennas have been bought by
Germany for the European satellite network.
The anti-flu drug Relenza, developed from a CSIRO
discovery, is approved for use in 51 countries. Work is
advanced on a new treatment for hepatitis B, and with
Virax Holdings Ltd we are partners in an international
project to develop an AIDS vaccine.
We have helped the NSW Sustainable Energy Authority
identify rich new areas of wind energy, and are
continuing to develop and test state-of-the-art fuel
cells as a new source of domestic and transport power.
In support of the minerals sector, CSIRO
is well advanced in developing the ‘Glass Earth’,
a complex of technologies to help Australia’s miners
‘see’ into the top kilometre of the earth’s crust and find
huge new mineral bodies.
We’ve developed and commercialised one of the world’s
most sophisticated oil well management packages.
We’re working with farming groups, regional
communities and rural companies in the fight against
salinity, to revegetate and reafforest our landscape and
to develop new, sustainable industries. The discovery
of the flowering switch gene by CSIRO’s Dr Jim Peacock,
Dr Liz Dennis and their team, could help boost grain
production by millions of tonnes. It won the 2000
Prime Minister’s Prize for Science.
In Australia’s oceans we’ve discovered a wealth of new
species, declared war on introduced marine pests and
helped develop more sustainable fisheries management
systems. On land, we are gaining fresh insights into our
rivers, lakes, estuaries, groundwaters and wetlands so
Australians can protect and use them far into the
future. In our cities we’re helping to devise better ways
to save, use and distribute precious water.
CSIRO has more than 700 research partnerships
worldwide, including with giants like Japan’s
US$114 billion Itochu company. We’re leveraging
these to create new opportunities for exports and
joint ventures by Australian companies.
We are helping put new wines, like Tyrian and Rubian,
on the world’s dining tables, designing safer, tastier
and more nutritious foods, developing better eucalypts
for silviculture, outsize prawns for aquaculture and
healthier sheep for agriculture.
These are just some of the many research projects now
under way through CSIRO and its partners in industry,
government and academia. At their core is our belief
that, through investing in partnerships, know-how and
great people, we can help deliver a prosperous,
sustainable and dynamic Australia.
And the cost of CSIRO to the average Australian?
Less than ten cents a day.
After reading this report and its companion Creative
Solutions, I hope you’ll agree that Australia is getting
real value from its science.
Geoff Garrett
Chief Executive, CSIRO
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Chapter 3
About CSIRO
Enabling legislation >>
Powers >>
CSIRO is an independent statutory authority constituted
and operating under the provisions of the Science and
Industry Research Act 1949. The reporting, accountability
and other rules for CSIRO’s operation are set out in the
Commonwealth Authorities and Companies Act 1997.
In summary, the Organisation has power to do whatever
is necessary for the best performance of its functions.
■
arrange for research and other work to be undertaken
outside CSIRO;
Functions >>
■
form partnerships or companies;
■
make its discoveries and inventions available for
fees, royalties or other considerations;
■
pay bonuses to staff for discoveries or inventions; and
■
charge fees for research, facilities or services
provided to others.
In particular it may:
In summary, CSIRO’s primary functions are:
■
to carry out scientific research
- to assist Australian industry and to further
the interests of the Australian community;
■
- to contribute to national and international
objectives and responsibilities of the
Commonwealth Government; and
A full description of CSIRO’s functions and powers can
be found in Appendix 4.
to encourage or facilitate the application and
use of the results of its own or any other scientific
research.
Responsible Minister >>
Secondary functions include international scientific
liaison, training of research workers, publication of
research results, and dissemination of information
about science and technology.
From 1 July 2000 to 30 June 2001, the Minister
responsible for CSIRO was Senator the Honourable Nick
Minchin, Minister for Industry, Science and Resources.
Under the Science and Industry Research Act 1949,
the Minister has the power to:
■
direct CSIRO to carry out scientific research for any
purpose (sub-paragraph 9(1)(a)(iv));
■
provide to the CSIRO Board in writing, directions
and guidelines with respect to the performance of
the functions, or the exercise of the powers, of the
Board or of the Organisation (section 13 (1)); and
■
direct the Board, in the performance of its functions
and in the exercise of its powers, to have regard
to any relevant policies of the Commonwealth
Government.
The Minister did not exercise any of these powers
during 2000-01.
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The CSIRO Board (2000-01) >>
Chair man
Mr Charles Allen
AO MA MSc FTSE
Company Director
5 December 1996
— 5 November 2001
Members Current at 30 June 2001:
Dr Geoff Garrett
BA(Hons) MA PhD
Chief Executive
8 January 2001
— 7 January 2006
Mr Don Mercer
BSc(Hons) MA(Econ)
Company Director
4 March 1998
— 3 March 2003
Mr John Gandel
AO
Chairman, Gandel Group Pty Ltd
23 February 1999
— 22 February 2004
Professor Mary O’Kane
BSc PhD Vice-Chancellor
University of Adelaide
28 May 1997
— 31 December 2000
1 January 2001
— 27 May 2002 (reappointment)
Mr Russell Higgins
BEc(Hons)
Secretary, Department of Industry,
Science and Resources
7 April 1997 — 30 June 2000
10 August 2000
— 7 April 2002 (reappointment)
Mr Norbury Rogers
BCom FCA
Senior Consultant Ernst & Young
28 May 1997
— 31 December 2000
1 January 2001
— 27 May 2002 (reappointment)
Ms Catherine Livingstone
BA(Hons)
Company Director
1 January 2001
— 31 December 2005
Professor Vicki Sara
BA(Hons) PhD DOC
Chair, Australian Research Council
15 July 1998
— 14 July 2003
Ter ms completed
Mr Don McDonald
OBE
Grazier
15 July 1998
— 14 July 2003
during year:
Dr Colin Adam
BEc(Hons) PhD FIEAust FTSE
Chief Executive (Acting)
10 February 2000
— 7 January 2001
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CSIRO Service Charter >>
Our purpose
Customer ser vices
By igniting the creative spirit of our people, we deliver
great science and innovative solutions for industry,
society and the environment.
For organisations and individuals seeking scientific
research expertise, we will:
■
work with the customer to develop an in-depth
understanding of their needs;
Who we are
■
assist in clarifying the scientific expertise required
to address the customer’s needs;
■
where CSIRO has the available expertise, develop
a proposal for CSIRO to provide a service to the
customer;
■
negotiate a value-based contract with the customer;
and
■
conduct research or other scientific services as
specified in the contract with the customer in
a professional manner.
CSIRO is Australia’s Commonwealth Scientific and
Industrial Research Organisation. We are one of the
world’s largest and most diverse scientific research
organisations.
What we do
CSIRO maintains an uncompromising focus on delivering
service to our customers and stakeholders from
world-class science. We provide:
■
advanced technologies to businesses to enable them
to compete more effectively in domestic and
international markets; and
■
knowledge-based services to governments and
businesses to help make Australia a better place
in which to live.
Our customers
Our customers are essential to our success. They
include:
■
business, including business associations and
individual businesses;
■
the Commonwealth and State governments and their
agencies; and
■
the Australian community.
For governments and their agencies, we will provide:
■ strategic and applied research in support of
international, national and regional economic,
social and environmental priorities;
■
submissions to enquiries and working parties where
scientific and technical advice is required; and
■
delivery of scientific and technological inputs to
foreign trade missions and overseas aid projects.
For people, companies and other organisations seeking
information we will:
■ provide up-to-date, accurate information about
CSIRO and its activity;
■
provide information and expert opinion on national
and international developments in areas of science
and innovation in which CSIRO has expertise; and
■
where the enquiry is outside CSIRO’s expertise,
direct the enquirer to institutions which may be
able to provide the information.
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Our ser vice standards
Checking our perfor mance
Our performance can be measured against the following
standards:
We will:
■
in our activities the potential benefit to the Australian
community will be identifiable;
■
all scientific and commercial activity will be
conducted with due professional care and skill;
■
the Organisation will seek, through advisory
committees, representing the sectors of the economy,
and other means, the input of senior industry and
government officials in deciding its research
priorities;
■
the Organisation will seek and respond to feedback
from the client for each research project undertaken;
■
the Organisation will utilise its scientific capability
as effectively as possible when addressing the needs
of its customers;
■
advice given will be independent and based on
appropriate expertise;
■
CSIRO will listen to the community and recognise
its concerns where they relate to matters of science
or our behaviour.
■
evaluate our services against the standards we have
set in this Charter, to see if we are meeting those
standards;
■
informally review the standards set out in this
Charter during the year in response to ongoing
changes; and
■
formally review the standards set out in this Charter
at least once a year and adjust them in light of
comments received, and include in the Annual
Report, which is tabled in Parliament, the outcomes
of the formal review and the adjustments made to
the Charter as a result.
How to give us feedback
CSIRO greatly welcomes feedback on its performance.
Should you wish to contact us in this regard, the first
port of call would normally be the CSIRO officer with
whom you have been dealing; alternatively senior
management in the relevant Division or Business Unit,
or CSIRO Customer Relations at:
Staff conduct
PO Box 225
Dickson ACT 2602
The Staff Code of Conduct is based on four main
principles:
Tel (02) 6276 6789
Email [email protected]
■
staff are expected to perform their duties with
professionalism and integrity, and work efficiently
to enable CSIRO to meet its research and corporate
goals;
■
fairness, honesty, equity and all legal requirements
are to be observed by all CSIRO staff in the conduct
of official duties and during interactions with clients
and members of the public;
■
real or apparent conflicts of interest are to be
avoided on all occasions; and
■
intellectual property including confidential information
will be properly protected during employment with
CSIRO and afterwards, and appropriate business
and commercial protocols will be strictly observed
by staff.
We will deal with feedback quickly and effectively,
passing on credit in the case of compliments and
striving hard to make amendments and improve where
concerns are expressed about our performance.
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Structure, management and staff >>
The Science and Industry Research Legislation
Amendment Act 1986 established a ten-member Board
responsible for determining policy and ensuring the
efficient functioning of CSIRO.
Research is performed by the Divisions or Business
Units of CSIRO. Divisions are largely organised by
scientific discipline, and most contribute to more than
one Sector.
The Chief Executive, who is a member of the Board,
is responsible for the Organisation’s activities. In the
reporting year, he was supported in this role by four
Deputy Chief Executives, who together with the Chief
Executive, constituted the Executive Committee that
oversaw CSIRO’s operations. From 1 July a new
management structure consistent with the objectives
of the 2001 Strategic Action Plan comes into being,
see Chapter 9.
Details of responsibilities and participation in this
structure up to 30 June are in the Organisation Charts
following. (Chart 1: Corporate responsibilities; Chart 2:
Operational arrangements).
CSIRO’s research has been planned and resourced on a
Sectoral basis. The Organisation has defined 22 Sectors
covering research in agribusiness industries;
environment and natural resources; manufacturing,
information and service industries; and minerals and
energy industries. In the reporting year each Deputy
Chief Executive oversaw a group of Sectors and a
number of corporate functions.
The locations of CSIRO’s main sites are shown on the
map that follows these charts.
CSIRO staff are employed under Section 32 of the
SIR Act 1949. Senior managers are listed following
the charts and map.
At 30 June 2001 CSIRO had a total staff of 6 511, which
has an equivalent full-time value of 5 928.
The numbers of staff employed in different job
categories are shown below. More than 1 700 CSIRO
staff have a PhD and approximately forty-six per cent
of CSIRO staff have attained postgraduate level of
education.
Staff by gender and principal functional area
FEMALE
MALE
TOTAL
Research Scientists
228
1 290
1 518
Research Project staff
964
1 563
2 527
4
32
36
12
197
209
Technical Services
104
604
708
Communication & Information
232
123
355
86
64
150
Administrative Support
696
237
933
Corporate Management
14
61
75
2 340
4 171
6 511
Senior Specialists
Research Management
General Services
TOTAL
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Chart 1: Corporate Responsibilities as at 30 June 2001
(See Chapter 9 for the new Senior Management Structure from 1 July 2001)
THE BOARD
Mr Charles Allen, AO (Chairman)
Mr John Gandel, AO — Dr Geoff Garrett — Mr Russell Higgins — Ms Catherine Livingstone — Mr Don McDonald
Mr Don Mercer — Professor Mary O’Kane — Mr Norbury Rogers — Professor Vicki Sara
Corporate Executive Office
General Counsel
Chief Executive
Mr Terry Healy
Dr Geoff Garrett
Corporate Secretary
Dr Ted Cain
Risk Assessment & Audit
General Manager
Mr Peter O’Callaghan
DEPUTY CHIEF EXECUTIVES
Dr Bruce Hobbs
Dr Ron Sandland
Vacant
Dr Paul Wellings
Deputy Chief Executive
Deputy Chief Executive
Deputy Chief
Executive
Deputy Chief Executive
Chair
Environment & Natural
Resources
Chair
Chair
Minerals & Energy
Industries
Information,
Manufacturing &
Service Industries
Agribusiness
Industries
Chair
CSIRO DIVISIONS AND CORPORATE SUPPORT UNITS
Divisions
Divisions
Divisions
Divisions
Building, Construction
& Engineering
Energy Technology
Exploration & Mining
Minerals
Petroleum Resources
Australia Telescope
National Facility
Health Sciences
& Nutrition
Manufacturing Science
& Technology
Mathematical &
Information Sciences
Molecular Science
Telecommunications
& Industrial Physics
Food Science Australia*
Livestock Industries
Plant Industry
Textile & Fibre
Technology
Atmospheric Research
Entomology
Forestry & Forest
Products
Land & Water
Marine Research
Sustainable Ecosystems
*
*
*
Commercial Group
CSIRO Publishing
*
*
*
*
*
*
Corporate Human
Resources
Leadership, Career
& Team Development
*a joint venture with Afisc
Information Technology
Services
Corporate Property
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*
*
*
Corporate Finance
Strategic Planning &
Evaluation
Chart 2: Operational arrangements as at 30 June 2001
ALLIANCES and SECTORS
DIVISIONAL GROUPS
Agribusiness
Food Science Australia
Forestry & Forest Products
Livestock Industries
Plant Industry
Environment & Natural Resources
Atmospheric Research
Entomology
Land & Water
Marine Research
Sustainable Ecosystems
Information, Manufacturing & Service Industries
Australia Telescope National Facility
Building, Construction & Engineering
Health Sciences and Nutrition
Manufacturing Science & Technology
Mathematical & Information Sciences
Molecular Science
Telecommunications & Industrial Physics
Textile & Fibre Technology
Minerals & Energy Industries
Energy Technology
Exploration & Mining
Minerals
Petroleum Resources
and
indicate Sectors to which a Division plans to contribute in 2001-02. An open circle indicates a contribution of less than $300 000
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Petroleum
Mineral Processing & Metal Production
Mineral Exploration & Mining
Energy
Services
Radio Astronomy
Pharmaceuticals & Human Health
Measurement Standards
Integrated Manufactured Products
Information & Communication Technologies
Chemicals & Plastics
Built Environment
Marine
Land & Water
Climate & Atmosphere
Biodiversity
Textiles, Clothing & Footwear
Meat, Dairy & Aquaculture
Horticulture
Forestry, Wood & Paper Industries
Food Processing
Field Crops
Minerals
& Energy
Industries
Information, Manufacturing
& Service Industries
Environment &
Natural Resources
Agribusiness
Baker's Hill
[12]
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Hobart
Prospect
Macquarie Uni
Marsfield
Lindfield
Nth Ryde
Black Mtn
CANBERRA
Campbell
Sandy Bay
Toowoomba
Cleveland
St Lucia
Samford
Pinjarra Hills
Indooroopilly
Cannon Hill
BRISBANE
SYDNEY
Ginninderra
Acton/Cossa
Gungahlin
Acton/Anu
Werribee
Albury
Lucas Heights
Rendel
Belmont
ROCKHAMPTON
Yarralumla
Belmont
Geelong
Merbein
Deniliquin
Griffith
Parkes
Siding Springs
Gatton
Woodstock
Davies Lab
Collins Street
Mount Gambier
Kintore Avenue
Narrabri
Culgoora
Arding
Chiswick
ARMIDALE
Atherton
TOWNSVILLE
Carlton
Collingwood
Syndal
Parkville
Preston
Highett
Blackburn Rd
N. Clayton
Clayton
Aspendale
Urrbrae
Floreat Park
Waterford
Marmion
Bentley
Nedlands
Woodville
ADELAIDE
PERTH
MELBOURNE
Alice Springs
Darwin
CSIRO locations - as at 30 June 2001
Senior staff and addresses (as at 30 June 2001) >>
CSIRO Head Office - Canberra
CSIRO Divisions
PO Box 225
DICKSON ACT 2602
Atmospheric Research
Tel
Chief Dr Graeme Pearman, AM
Private Bag 1
ASPENDALE VIC 3195
(02) 6276 6000
Chief Executive
Tel (03) 9239 4400
Email [email protected]
Web www.dar.csiro.au
Dr Geoff Garrett
Tel (02) 6276 6621
Email [email protected]
The Australia Telescope National Facility
Deputy Chief Executives
Dr Bruce Hobbs
Tel (08) 9333 6361
Email [email protected]
Dr Ron Sandland
Tel (02) 6276 6127
Email [email protected]
Dr Paul Wellings
Tel (02) 6246 4551
Email [email protected]
Director Professor Ron Ekers
PO Box 76
EPPING NSW 1710
Tel (02) 9372 4100
Email [email protected]
Web www.atnf.csiro.au
Building, Construction and Engineering
Chief Mr Larry Little
PO Box 56
HIGHETT VIC 3190
Corporate Secretary
Tel (03) 9252 6000
Email [email protected]
Web www.dbce.csiro.au
Dr Ted Cain
Tel (02) 6276 6694
Email [email protected]
Energy Technology
Chief Dr John Wright
PO Box 136
NORTH RYDE NSW 1670
Tel (02) 9490 8666
Email [email protected]
Web www.det.csiro.au
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Entomology
Health Sciences and Nutrition
Chief Dr Jim Cullen
GPO Box 1700
CANBERRA ACT 2601
Chief Professor Richard Head
PO Box 10041
ADELAIDE BC SA 5000
Tel (02) 6246 4001
Email [email protected]
Web www.ento.csiro.au
Tel (08) 8303 8800
Email [email protected]
Web www.hsn.csiro.au
Exploration and Mining
Land and Water
Chief Professor Neil Phillips
GPO Box 4908vv
MELBOURNE VIC 3001
Chief Dr Graham Harris
GPO Box 1666
CANBERRA ACT 2601
Tel (03) 9662 7411
Email [email protected]
Web www.dem.csiro.au
Tel (02) 6246 5700
Email [email protected]
Web www.clw.csiro.au
Food Science Australia*
Livestock Industries
Chief Executive Dr Michael Eyles
PO Box 52
NORTH RYDE NSW 1670
Chief Mr Shaun Coffey
120 Meiers Rd
INDOOROOPILLY QLD 4068
Tel (02) 9490 8333
Email [email protected]
Web www.foodscience.afisc.csiro.au
Tel (07) 3214 2200
Email [email protected]
Web www.li.csiro.au
*
Joint venture between the Australian Food Industry Science Centre
(Afisc) and CSIRO Food Science & Technology
Manufacturing Science and Technology
Chief Dr Ian Sare
Private Bag 33
CLAYTON SOUTH MDC VIC 3169
Forestry and Forest Products
Chief Dr Glen Kile
PO Box E4008
KINGSTON ACT 2604
Tel (03) 9545 2777
Email [email protected]
Web www.cmst.csiro.au
Tel (02) 6281 8211
Email [email protected]
Web www.ffp.csiro.au
Marine Research
Chief Dr Nan Bray
GPO Box 1538
HOBART TAS 7001
Tel (03) 6232 5222
Email [email protected]
Web www.marine.csiro.au
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Mathematical and Information Sciences
Plant Industry
Chief Dr Murray Cameron
Locked Bag 17
NORTH RYDE NSW 1670
Chief Dr Jim Peacock, AC
GPO Box 1600
CANBERRA ACT 2601
Tel (02) 9325 3100
Email [email protected]
Web www.cmis.csiro.au
Tel (02) 6246 4911
Email [email protected]
Web www.pi.csiro.au
Minerals
Sustainable Ecosystems
Chief Dr Rod Hill
Box 312
CLAYTON SOUTH VIC 3169
Chief Dr Steve Morton
GPO Box 284
CANBERRA ACT 2601
Tel (03) 9545 8500
Email [email protected]
Web www.minerals.csiro.au
Tel (02) 6242 1600
Email [email protected]
Web www.cse.csiro.au
Molecular Science
Telecommunications and Industrial Physics
Chief Dr Annabelle Duncan
Private Bag 10
CLAYTON SOUTH VIC 3169
Chief Dr Warren King
PO Box 76
EPPING NSW 1710
Tel (03) 9545 2222
Email [email protected]
Web www.molsci.csiro.au
Tel (02) 9372 4222
Email [email protected]
Web www.tip.csiro.au
Petroleum Resources
Textile and Fibre Technology
Chief Dr Adrian Williams
PO Box 3000
GLEN WAVERLEY VIC 3150
Chief Dr Brett Bateup
PO Box 21
BELMONT VIC 3216
Tel (03) 9259 6800
Email [email protected]
Web www.dpr.csiro.au
Tel (03) 5246 4000
Email [email protected]
Web www.tft.csiro.au
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Corporate General Managers
Corporate Executive Office
Finance
Principal Secretary
Government Business and
International Scientific Liaison
Mr Bob Garrett
Tel (02) 6276 6423
Email [email protected]
Dr Beth Heyde
Tel (02) 6276 6630
Email [email protected]
General Counsel
Mr Terry Healy
Tel (03) 9662 7421
Email [email protected]
Manager Education Programs
Mr Ross Kingsland
Tel (02) 6276 6477
Email [email protected]
Human Resources
Mr Peter O’Keefe
Tel (02) 6276 6418
Email peter.o’[email protected]
Manager Ministerial and
Parliamentary Liaison
Information Technology Services
Ms Marie Keir
Tel (02) 6276 6682
Email [email protected]
Mr Jonathan Potter
Tel (02) 6276 6276
Email [email protected]
Director National Awareness
Mr Julian Cribb
Tel (02) 6276 6244
Email [email protected]
Property
Mr George Harley
Tel (02) 6276 6462
Email [email protected]
Publishing
Mr Paul Reekie
Tel (03) 9662 7650
Email [email protected]
Risk Assessment and Audit
Mr Peter O’Callaghan
Tel (03) 9662 7414
Email [email protected]
Strategic Planning and Evaluation
Dr Andrew Pik
Tel (02) 6276 6034
Email [email protected]
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2: Outcome, Outputs and
Performance
In the first three chapters of this section (Chapters 4,
5 and 6), CSIRO reports on its performance in
accordance with requirements of the Commonwealth’s
accrual-based outcomes and outputs framework and
the performance indicators agreed with Government
as part of triennium funding arrangements.
Under the outcome-outputs framework, CSIRO’s core
business is defined in terms of the outputs to be
provided and the outcomes to be achieved in
consultation with key stakeholders and in recognition
of government priorities. By definition, outputs are
goods and services produced by CSIRO for external
organisations or individuals, and outcomes are the
impacts or consequences flowing from the production
and use of those outputs.
This information is supplemented in Chapter 7 with
reports on the results of seven ‘Chief Executive’s Special
Projects’ established in December 1997, and in Chapter
8 with a record of national and international awards
recognising the excellence of CSIRO’s performance in
many areas of research and its application.
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Chapter 4
CSIRO’s Outcome
The primary functions of CSIRO are to carry out scientific research and to encourage or facilitate the application
or utilisation of the results of such research in order to assist Australian industry, further the interests of the
Australian community, or contribute to the achievement of Australian national objectives or the performance
of the national and international responsibilities of the Commonwealth (Science and Industry Research Act, 1949 paraphrased). Under the accrual-based outcome-output framework, CSIRO receives funding from the Commonwealth
to carry out these functions in contributing to the following outcome:
Enhanced innovation, productivity and competitiveness in Australian industry with improved understanding and
management of the environment and natural resources in the interests of the Australian community.
This statement reflects the Government’s desire that
Australians continue to enjoy the benefits of our unique
natural environment and the fruits of a robust,
internationally competitive economy. For CSIRO, it
encompasses the recognition that - on local, national
and global scales - the pace of economic change and
the challenges of environmental management bring
with them a growing reliance upon the insights and
application of advances in science and technology.
Some examples of CSIRO’s contribution to the outcome,
achieved by adopting a variety of strategies to bring
about crucial advances in knowledge and its
application, include:
■
progress toward solutions to strategically important
issues for the nation, like the pilot hybrid energy
plant to power Australia’s cities without greenhouse
emissions or pollution;
■
new opportunities for small and medium enterprises,
like our low-emission car project that brought
together more than 95 industry partners and which
has helped generate an extra $500 million in new
export business potential for the local car
components industry;
■
world-leading breakthroughs in basic research,
like our internationally-acclaimed discovery of the
flowering switch gene, which could add billions
of dollars worth of grain to the global harvest;
■
new technologies to assist industries and create new
export markets, like CSIRO’s wireless chipset, that led
to the sale of Australian company Radiata PL to Cisco
Systems for US$300 million, as well as a boost for
local R&D;
■
environmentally friendly products and processes,
like our Windscape energy mapping software tool for
finding the richest wind areas for power generation;
■
new technologies and management systems that
improve safety in industry, like robot devices to
help reduce the loss of life and injuries in Australia’s
mines; and
■
environmental monitoring and management
technologies, like our atmospheric sampling
technology to help cut air pollution in Australia’s
cities.
More information about CSIRO’s various contributions
to its Outcome are given in Chapter 6 and in the
companion document to this Report, Creative Solutions,
published in August 2001.
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Chapter 5
CSIRO’s Outputs
As discussed in the previous chapter, CSIRO’s activities are directed toward a national outcome of ‘Enhanced
innovation, productivity and competitiveness in Australian industry with improved understanding and management
of the environment and natural resources in the interests of the Australian community’. CSIRO contributes to this
outcome through the production and delivery of research products and services - CSIRO outputs - for a wide range
of private and public organisations and individuals.
For convenience, CSIRO’s outputs are clustered into
four groups that represent four broadly defined target
groups:
■
Research products and services for the
Manufacturing, Information and Service Industries
■
Research products and services for the Minerals and
Energy Industries
■
Research products and services for Management
of the Environment and Natural Resources
■
Research products and services for Agribusiness
Industries
These four output groups comprise the 22 Sectors
which form a key element in the planning and conduct
of CSIRO’s research. With input from an external Sector
Advisory Committee and other sources of advice, CSIRO
develops a research plan for each Sector. The plan
addresses the key strategic issues for research in the
Sector and identifies specific outputs and outcomes
that will address those issues and contribute to the
overarching CSIRO outcome.
The relationship between the CSIRO outcome, the four
output groups and the 22 Sectors is illustrated in the
following chart.
A selection of key outputs delivered during the past
year is listed in the table below and described in
more detail on pages 35-75 (Performance Indicator
No.6: Adoption and Impact of CSIRO outputs).
More achievements covering the last three years are
described in the companion document to this Report
Creative Solutions, published in August 2001.
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Contributing Outputs TABLE
Outcome 1
Enhanced innovation, productivity and competitiveness
in Australian industry with improved understanding and
management of the environment and natural resources
in the interests of the Australian community.
Output Group 2
Output Group 3
Output Group 4
Research products
and services for
Manufacturing,
Information and
Service Industries
Research products
and services for
Minerals and Energy
Industries
Research products
and services for
Management of the
Environment and
Natural Resources
Research products
and services for
Agribusiness
Industries
Outputs in
Outputs in
Outputs in
Outputs in
1.1. Built
Environment
1.2. Chemicals and
Plastics
1.3. Information and
Communication
Technologies
1.4. Integrated
Manufactured
Products
1.5. Measurement
Standards
1.6. Pharmaceuticals
and Human
Health
1.7. Radio Astronomy
1.8. Services
2.1. Energy
2.2. Mineral
Exploration
and Mining
2.3. Mineral
Processing and
Metal Production
2.4. Petroleum
3.1. Biodiversity
3.2. Climate and
Atmosphere
3.3. Land and Water
3.4. Marine
4.1. Field Crops
4.2. Food Processing
4.3. Forestry, Wood
and Paper
4.4. Horticulture
4.5. Meat, Dairy and
Aquaculture
4.6. Textiles, Clothing
and Footwear
Output Group 1
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CSIRO OUTPUTS 2000-01
Manufacturing,
Information and
Service Industries
— Commercialisation of Align 3Droute planning technology
— Creation of CSIRO Urban Water Technologies company
— Development of stormwater screening technology
— ITS Connect: a new national freight system using smart technologies
— Improved management of termite attacks on buildings
— Biodegradable food packaging
— Improved export packaging for table grapes
— Commercialisation of boron technology to produce pharmaceuticals and
new materials
— Commercialisation of new grain fumigant, carbonyl sulfide
— Pre-commercialisation of SICOR polymer bonding technology
— Successful trials of product for bioremediation of chemical pesticides
— Formation of Quickstep Technologies company to commercialise Quikstep™
fast fabrication method for making composite products used in aerospace,
boat and car industries
— Development of scalable vector graphics viewer for pocket PCs
— Radiata wireless network sold to world markets
— Sale of multibeam antennas to Europe
— Design of interactive exhibit for Gallery of First Australians, National Museum
— Middleware technology evaluation reports for e-commerce
— Further hybrid-engine technology for ECOmmodore car
— Welding technology for aerospace aluminium castings
— Corrosion prediction models for aircraft
— Patenting of replacement for sulfur hexafluoride (used in magnesium
processing) to reduce greenhouse emissions
— Commercialisation of gas-tungsten arc welding technology
— Innovative spectacle lens design
— Process to treat coloured industrial effluents
— Successful trials of magnesium diecasting technology
— Production of atomic mirrors for new field of atom optics
— Establishment of facility to prepare reference gas mixtures for chemical
metrology
— Further developments in establishing an improved frequency standard
— Development of portable ultrasound standard
— New drug to treat hepatitis B in clinical trials
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— Licensing of sheep virus-based gene delivery technology for human uses
— Relenza flu vaccine sales increase
— Structures of major disease target proteins revealed
— High-speed monolithic microwave integrated circuits designed for Australia
Telescope
— First successful millimetre wavelength astronomical observations
— New evidence of greater age of the universe
— Parkes radio telescope surveys used in international studies
— Tests of Einstein’s warped space
— Electronic travel planner, TRIPS, prototype completed
— Face recognition technology undergoing trials
— Statistical studies of compliance behaviour for Taxation Office
— Data mining of health data to improve health care
Minerals and
Energy Industries
— Method to reduce greenhouse emissions from coal mines
— Studies of impact of power station waste ash on environment used in
developing mitigation processes
— Commercial uptake in USA of CSIRO’s Highwall Mining Guidance System
— Life cycle analyses of greenhouse gases and air pollutants emitted by
diesel fuels
— Improvements to power station efficiencies
— Commercial release of WindScape wind energy prediction tool
— New facility to test polymer electrolyte membrane fuel cells
— First sub-surface sampling of an active deep-ocean ore-forming environment
— Contribution to new software for processing gravity and magnetics data
— TEMPEST airborne electromagnetic system being deployed by mineral
industry and in National Action Plan for Salinity
— Tool to improve assessment of pit wall stability in underground mines
— New environmental monitoring techniques for Ranger minesite
— Computation Fluid Dynamics being used to increase profitability of mineral
processors
— Successful development of Australian Magnesium process
— New probes to measure complex gas flows in a smelter
— Research support provided to MIM to improve lead-zinc concentrator
performance
— Method of reducing dust emissions from electrostatic precipitators
— Commercialisation of Genesis 2000 software for analysing well data
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— Reduction of exploration costs at drill site by risk assessment advice
— Enhancement of sedsim petroleum basin modelling process
— Wellbore stability technology used to overcome major problems for a site
in South China Sea
Management of the
Environment and
Natural Resources
— Methods developed to halt native vegetation decline
— Biological control of bridal creeper succeeding
— Report on sustainable harvesting of firewood assisting in developing
national policy
— Business and Biodiversity Report produced to raise awareness of industry
about conservation
— Inventory of ecosystem services for Goulburn-Broken Catchment
— Software for managing tourism in Douglas Shire
— Commercial release of BioLink biodiversity software
— Recovery plans for golden sun moth
— Successful clearing of water hyacinth from Lake Victoria, central Africa
— Contributions to international climate change science
— Seasonal climate forecasting models and climate projections for Australia
— Forecasting systems for agriculture and Australian air quality
— Export of CSIRO-designed rainwater and atmospheric particle samplers to 17
countries
— Commercialisation of volcanic ash cloud detector for aviation industry
— Case studies of salinity management in Murray-Darling Basin
— Successful interaction with 3 communities to plan for rural and regional
sustainability
— Improved efficiency of irrigated agriculture demonstrated
— Technologies developed to remediate soil and groundwater
— Input to new national guidelines for fresh and marine water quality
— Methods to define fairer ways of allocating water resources
— Feasibility of physical economy modelling demonstrated for national
financial flows
— Resource survey of south east marine region
— Advice on conservation of deep sea marine environments
— Software to help control marine pests and improve estuary health
— Recommendations for managing expansion of aquaculture industry
— Measurement of impact of trawling on bycatch species
— Tiger prawn assessments helped restructure Northern Prawn Fishery
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— Technologies to use marine resources to enhance health value of food
— Predicting effects of climate on fisheries productivity
Agribusiness
Industries
— Discovery of flowering switch gene
— Successful mouse plague predictions in Victoria
— Decision support software for sugarcane industry
— Measurement of extent of nitrate contamination of groundwater
— Canadian leafcutter bees introduced to boost lucerne seed production
— Confirmation that growing lucerne can prevent waterlogging
— New wheat varieties developed resistant to Barley Yellow Dwarf Virus
— Commercialisation under way for Barleyplus™ variety with health benefits
— Economic benefits of stored grain research measured
— Improved methods developed to manage root disease in broad acre crops
— Innovative Foods Centre established
— Improved food coating (microencapsulation) patented
— Specialty dairy powders developed for export
— Software to aid in transporting perishable foods
— Meat processing equipment for exports
— Detection of foreign bodies in foods
— New whey protein isolate technology
— Demonstration plant to produce energy and activated carbon
— Mew test developed to predict best fertiliser results for pine plantations
— Planting trees to control waterlogging and salinity
— Sustainability of pine plantations demonstrated
— Airborne imagery to show forest health
— Workshops conducted for Australian Greenhouse Office
— Assessing threat of Asian Gypsy Moth
— Strategic tree planting to sustain rice growing areas
— Eucalypt posts used as vineyard trellises
— Testing thinning options for eucalypt plantations
— Plantations to preserve macadamia varieties
— Launch of website describing wasps in Australia
— Development of improved varieties of cashew nuts
— Development of new dried grape variety
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— Providing risk assessments for horticultural imports
— Genetic improvements to prawn stocks
— Vietnam prawn workshops to reduce disease threat
— Launch of GeneSTAR beef marbling test
— Cheaper environmental land assessment
— Recommendations for better management of grazing lands
— Use of Pondman software expands to 80 per cent of Australian prawn farms
— National redistribution of biocontrol agents for pastoral weeds
— More improved cotton varieties released to market
— Development of new ‘easycare’ technology for wool garments
— Industrial trials of SiroLock textile carding technology
— Launch of SelectGene software to help Merino breeders select sheep most
likely to produce fine wool
— World marketing of Australian Medical Sheepskin
— Improved oral delivery of therapeutics to livestock
— Benchmarking studies of Chinese and Indian wool processing mills
— Animal production from saline land initiative commenced
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Chapter 6
CSIRO’s Performance
Introduction >>
This performance report is structured around the six
performance indicators negotiated with government.
Information on the ‘adoption and impact’ indicator
is presented by the four output groups (disaggregated
into 22 Sectors) described in the previous chapter.
The performance indicators paint a picture of strong
performance, delivering good value for money from
the nation’s investment in CSIRO.
CSIRO’s performance has been achieved against the
background of an increasingly competitive international
research community. To maintain our recognised
position as one of the world’s leading research
organisations, and to further enhance our contribution
to Australia into the future, CSIRO will need an
increased level of resources.
Consequently the new Executive Team has put in place
an ambitious plan to seek a 50 per cent growth in
turnover by 2005, commencing in 2001-02. An overview
of the plan is presented in Chapter 9 of this Annual
Report and the initial results should begin to be
evident in next year’s report.
CSIRO’s performance indicators are set in the context
of CSIRO’s overall planning and evaluation framework
as shown in Figure 1. The framework incorporates the
government’s outcomes and outputs philosophy within
a broader ‘opportunities to outcomes’ context, and also
features the criteria employed in CSIRO’s priority setting
methodology (first developed in 1990).
As illustrated in the diagram, and elaborated below, the
six current performance indicators include two input
indicators, two output indicators and two outcome
indicators. While it is likely that these performance
indicators will be revisited and reformulated in
discussions with government during the course
of the next financial year, they presently provide the
evaluation framework within which CSIRO’s performance
is assessed. Taken together, these performance
indicators provide information on CSIRO’s effectiveness
in contributing to the achievement of the planned
outcome, and on performance in relation to the price,
quantity and quality of outputs.
Input (Price) Indicators
■
Sector Profile (the shift of resources in accord
with priority decisions over the triennium).
■
External Earnings (amounts and sources of external
earnings for research and related services).
Output (Quantity and Quality) Indicators
■
Publications, Reports and Patents (the number of
patents, reports and other publications annually;
quality assessment through external citation analysis
on a five-yearly basis).
■
Research Training (the number of research students
supervised or co-supervised by CSIRO staff).
Outcome (Effectiveness) Indicators
■
Customer Satisfaction (measured by customer
feedback and repeat business).
■
Adoption and impact of CSIRO outputs (evidence
of the uptake of research results and advice together
with estimates of the consequent economic, social,
environmental or policy impacts).
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CSIRO Planning and Evaluation Framework
Return to Australia Criteria
CSIRO Role
Potential Benefits
R&D Capacity
R&D Potential
Ability to Capture
Evaluation Criteria and Methods
Cost Effectiveness: Benefit Cost Studies
Operational Efficiency:
Peer Review, Benchmarking
Appropriateness:
Sector Research Priorities
Opportunities
Objectives
Inputs
Outputs
Outcomes
Staff Performance Planning and Evaluation
Effectiveness: Customer Surveys, Project Reviews, Case Studies
Sector Marketing Analysis
Performance Indicators
Sector Profile
External Earnings
Figure 1 CSIRO Planning and Evaluation Framework
2 :
c s i r o
C S I R O ' s P e r f o r m a n c e
a n n u a l r e p o r t 0 0 – 0 1
[27]
Patents, Reports
and Publications
Customer
Satisfaction
Training
Adoption and
Impact
Indicator 1: Sector profile
This indicator measures CSIRO’s shift of resources in line
with changing priorities as determined in consultation
with government, Sector Advisory Committees and
CSIRO customers in the public and private sectors.
CSIRO’s research planning and priority setting is based
on an assessment of the relative attractiveness and
feasibility of research opportunities in 22 customerfocussed Sectors. Thus Figure 2, which charts actual
expenditure in 2000-01 against the planned level of
investment in each Sector, is an indicator of CSIRO’s
performance in allocating resources in accordance
with identified priorities at the Sector level on an
annual basis. Total expenditure includes expenditure
from both appropriation and external income, and is
therefore subject to the uncertainties of market
conditions in any given period.
The enhanced effort for the Land and Water and Meat,
Dairy and Aquaculture Sectors was due to higher than
expected external revenue from those Sectors. The
largest shortfall in external revenue occurred in the
Pharmaceuticals and Human Health Sector, although
total expenditure was maintained at about the planned
level and a successful float of GroPep, a company in
which CSIRO has substantial equity, took place in
2000. It should also be noted that the chart reflects
an estimate of CSIRO’s operational activities in Food
Science Australia (a joint venture with the Australian
Food Industry Science Centre, Afisc) that differ from
the legal interest.
Another aspect of the ‘shift of resources in accordance
with changing priorities’ is reflected in CSIRO’s priority
decisions for the current triennium. As part of its
strategy to exploit the strongest links between market
demand and the opportunities offered by science and
technology, CSIRO has allocated additional resources
for research in the Mineral Exploration and Mining, Land
and Water, Marine, Food Processing and Radio
Astronomy Sectors, and reduced investment in certain
components of the Forestry Wood and Paper Industries,
Meat Dairy and Aquaculture and Built Environment
Sectors.
CSIRO has also recognised the unique role that
information and communication technologies (ICT)
play across all Sectors by forming an ICT Strategy
Team. The Team has members drawn from across the
Organisation and is chaired by a Deputy Chief Executive
(Ron Sandland). The overall objective of the Team is
to develop strategies and implementation plans to
maximise the scientific and commercial impact of
CSIRO’s ICT research. An ICT research strategy will
be developed by the end of 2001.
Biotechnology is another area of technology recognised
as of key importance in its cross-cutting influence across
a range of industry sectors. Both Commonwealth and
State governments are developing a range of strategic
initiatives to nurture what is also a rapidly emerging
industry sector in its own right. Approximately half of
CSIRO’s research units contribute to or utilise advanced
biotechnologies. In recognising the significant potential
for economic growth, the need to strengthen the
research and development base and to successfully
commercialise research outcomes, a CSIRO Biotechnology
Strategy Team, chaired by a Deputy Chief Executive (Paul
Wellings), has been formed to prepare a CSIRO-wide
biotechnology strategy in the first half of 2001-02.
In addition to the major shifts of resources between
Sectors referred to above, CSIRO’s external Sector
Advisory Committees (SACs) played a key role in
advising CSIRO on changing priorities within Sectors.
In total, some 30 per cent of the CSIRO research
portfolio was changed in planning for the current
triennium. The bulk of these changes occurred through
the process of redesigning the research portfolios
within the individual sectors.
2 : C S I R O ' s P e r f o r m a n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[28]
CSIRO Expenditure by Sector, 2000-01, $'000
(Planned data include approved shifts from the original Strategic Research Plan)
Actual
Note: In addition to $30m focused directly on the ICT industries, a
further $50m was directed towards ICT applications in other domains.
An estimated $80m was invested in advanced biotechnologies by CSIRO
Divisions across a wide range of Sectors.
Planned (incl approved changes)
70, 000
60, 000
50, 000
40, 000
30, 000
20, 000
s
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Figure 2 CSIRO Expenditure by Sector, 2000-01
Indicator 2: Exter nal Ear nings
This indicator reflects the demand for CSIRO’s research
and services consistent with its mission.
CSIRO has again exceeded its 30 per cent external
earnings target by achieving 32.3 per cent
($241.3 million) of revenue from research and services
in 2000-01. Trend data are shown in Figure 3.
2 :
c s i r o
The recent strong growth in overseas earnings has
steadied at around $32 million of which about
$26 million (80 per cent) is from private sector sources.
Allowing for the fact that half of Rural R&D Corporation
investment is from industry levies, 48 per cent of
CSIRO’s external earnings (or 15 per cent of turnover)
is from the private sector. Private sector investment
in R&D in Australia has declined in each of the last four
years (as a percentage of Gross Domestic Product),
based on data from the Australian Bureau of Statistics,
but CSIRO’s share of that investment has remained
steady in absolute terms.
C S I R O ' s P e r f o r m a n c e
a n n u a l r e p o r t 0 0 – 0 1
[29]
Year
Trend in exter nal ear nings by source, $ million
2000-01
Australian Private
Sector
1999-00
Commonwealth, State
& Local Govt
Rural Industry R&D
Corporations
1998-99
Cooperative
Research Centres
1997-98
Other
Overseas Entities
1996-97
1995-96
1994-95
0
50
100
150
200
1995-96
$m
1996-97
$m
250
300
$ million
Source
Australian Private Sector
1994-95
$m
1997-98
$m
1998-99
$m
1999-00
$m
2000-01
$m
61.2
66.4
74.7
77.5
69.4
74.0
75.2
Commonwealth, State & Local Govt 49.0
49.8
48.4
52.3
63.1
68.6
66.8
Rural Industry R&D Corporations
41.1
40.8
44.2
40.3
40.8
40.7
40.8
Cooperative Research Centres
26.9
28.4
34.0
32.5
31.3
30.0
27.6
Other
9.1
7.9
9.2
8.1
4.1
4.9
5.2
Overseas Entities
8.3
8.9
11.0
15.5
21.9
31.4
32.7
195.6
202.1
221.6
226.1
230.6
249.5
248.3
Net adjustment - work in progress
and deferred revenue
(0.8)
6.6
2.0
10.7
(9.3)
(0.1)
(7.0)
208.7
223.6
236.8
221.3
249.4
241.3
External Earnings Performance
Indicator
194.8
The definition of external earnings for performance indicator purposes excludes items deemed to be unrelated
to the conduct of research, eg interest received.
Figure 3 Trend in external earnings by source, $ million
2 : C S I R O ' s P e r f o r m a n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[30]
Indicator 3: Publications, Reports and Patents
fields, environment/ecology and agricultural sciences,
CSIRO ranks as one of the top five institutions in the
world. CSIRO performance is particularly strong in the
key areas of information and communication
technologies, and biotechnology, citations per
publication being one-third higher than the Australian
average.
This indicator is used to assess primarily CSIRO’s
contribution to, and hence ability to access, the world’s
knowledge base.
Summary
CSIRO’s outputs of publications and patents in 2000-01
reflect the long-term average whilst the number of
reports produced in 2000-01 has shown a dramatic
increase. Citation rates for CSIRO’s scientific
publications remain very high, reflecting their strong
impact and quality. A recent analysis by the Institute
of Scientific Information (USA) has revealed that over
the last decade, CSIRO’s publications are ranked in the
top 1 per cent of the world’s scientific institutions in
11 of the 22 disciplinary fields assessed. In two of these
The number of client reports produced in 2000-01
reached a record high of 8 936.
World Intellectual Property Organisation (WIPO) figures
indicate that in the year 2000 CSIRO filed the most
Patent Cooperation Treaty applications of an Australian
entity. CSIRO is currently filing applications for around
90 new inventions per year, which is marginally above
the 5-year average of 88 new inventions per year.
Trend in CSIRO publications
2 000
1999
1 998
1 997
1 996
1 995
1 994
1 993
1992
1991
1990
1989
1 988
1 987
1 986
0
500
1 000
1 500
2 500
2 000
3000
3500
4000
4500
N U M B E R O F P U B L I C AT I O N S
YEAR
1986 1987 1988 1989 1990
Books and Chapters 332
203
209
184
199
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
216
211
216
213
179
175
207
295
318
Technical Reports
308
348
226
269
212
331
414
214
186
148
Conference Papers
889
707
823
805
949
910
970
1016
891
805 1630 1278
Journal Articles
123
236
178
194
229
175
1183 1280 1035
1855 1877 1756 1705 1643 1534 1655 1582 1799 1984 2149 1682 1472 1535
Figure 4 Trend in CSIRO publications
2 :
c s i r o
C S I R O ' s P e r f o r m a n c e
a n n u a l r e p o r t 0 0 – 0 1
[31]
1619
Publications
other half are reports resulting from the provision of
testing and calibration services by Divisions.
The publications data are shown in Figure 4. Overall
levels are on par with long-term trends and there has
been a small growth in the patent portfolio, and a
marked increase in client reports. This indicates
increased organisational productivity, given that there
has been a reduction in total staff over the past
several years.
Patents
As at 30 June 2001, CSIRO had 77 Patent Cooperation
Treaty (PCT) applications in place, up from 63 as at
30 June 2000, and compared to an average of 78 since
June 1995. The total number of Australian and foreign
patents and applications held at 30 June 2001 is 3 505,
up from 3 436 last year, and reflects a steady growth
from June 1995 when the total was 2 867. The decision
to file, prosecute and/or maintain a patent takes into
account the technical considerations, patent attorney
and legal advice, market and business conditions, and
the input of commercial partners.
In terms of impact or quality of the publications, as
measured by citation analysis, CSIRO exhibits a strong
citation performance in world terms in all disciplines in
which CSIRO has 10 per cent or more of all Australian
publications - agricultural, veterinary and environmental
sciences, earth sciences, engineering and technology,
and physical sciences. Its overall citations per
publication (cpp) rate is at least 30 per cent higher
than the world average, and also higher than the
Australian cpp rate by a considerable margin.
Overseas patent applications represent 84 per cent of
the above portfolio, and this compares with 76 per cent
in June 1995. Currently CSIRO is filing applications for
around 90 new inventions per year (5-year average, 88).
These trends reinforce CSIRO’s strategy of ensuring its
patent portfolio is commercially relevant.
Reports
The number of client reports recorded in 2000-01
increased to 8 936 from 7 339 in the previous year
and is also up from the previous high of 8 099 in 1998,
compared to 7 095 in 1997 and 5 076 in 1996. Around
half of the reports relate to project activity while the
World Intellectual Property Organisation (WIPO) figures
indicate that in the year 2000 CSIRO filed the most
PCT applications of an Australian entity. On a world
scale CSIRO was ranked No 118.
Growth in Net Income from Intellectual Property held by CSIRO
2000-01
1999-00
1998-99
Year
1997-98
1996-97
IP Related Income
Gross IP Expenditure
1995-96
1994-95
1993-94
0
2
4
6
8
10
$ million
Figure 5 Growth in net income from CSIRO’s patent portfolio
2 : C S I R O ' s P e r f o r m a n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[32]
12
Income from royalties and licence fees in 2000-01 was
$9.3 million (excluding Food Science Australia) against
an expenditure of $5.1 million for legal and portfolio
management costs. This income represents 1.5 per cent
as a percentage of appropriation revenue. Trend data
are shown in Figure 5, illustrating the continuing
improvement in earnings from the patent portfolio.
Indicator 4: Research Training
This indicator reflects CSIRO’s contribution to the
development of the Australian skills base.
In 2001, CSIRO jointly supervised a total of
609 postgraduate research students, including
475 PhD students, 57 Masters students and
77 Honours students; 23 per cent of these students
were supervised through the Organisation’s involvement
in the Cooperative Research Centres (CRC) Program.
The overall number of students supervised is 17 per
cent higher than in 2000, with the number of PhD
students supervised being 25 per cent higher. The
proportion via the CRC Program is lower than in
previous years (which was approximately 30 per cent).
At 30 June 2001 CSIRO was a core participant in
44 CRCs still in operation. In addition to these CRCs,
CSIRO is a participant in 14 of the 19 successful Round
7 CRCs that were due to commence operation on 1 July
2001. This puts CSIRO’s future involvement at 49 of 63,
which is consistent with CSIRO’s past involvement in
the Program.
In 2001, CSIRO is sponsoring 128 postgraduate
students. This includes full scholarships for 35 PhD,
4 Masters and 3 Honours students and partial
scholarships for a further 75 PhD, 4 Masters and
7 Honours students. The total number of students
sponsored shows a 27 per cent increase on 2000.
CSIRO also contributes to student lectures and
seminars, undergraduate and TAFE courses, short
courses, summer schools, apprenticeships and
vacation student programs.
Indicator 5: Customer Satisfaction
This indicator relates to CSIRO’s responsiveness to the
needs of customers with whom the Organisation has
a contractual arrangement. The indicator is assessed
through a range of measures including repeat business,
formal surveys, and joint project management. The
analysis will therefore tend to exclude the provision
of scientific advice to aid Government policy making.
Satisfaction in CSIRO among its industry and
government partners remained at high levels,
as illustrated by formal surveys, commissioned
evaluations, repeat business evaluation, and by way
of anecdotal feedback.
Across CSIRO various measurement techniques were
used to gauge customer satisfaction. The most widely
used method (by 75 per cent of CSIRO Divisions) was
formal surveys and questionnaires. Data obtained from
formal surveys and questionnaires are often
supplemented with data collected by more informal
methods such as phone interviews, steering committee
and project management meetings, measures of repeat
business and customer testimonials.
The size and duration of a contract quite often
determines whether customer satisfaction is measured
and the type of method used. More than half of the
customers who had completed a contract with CSIRO
within the last financial year were approached to
measure their satisfaction, and although not all
customers responded, those that did generally
expressed high levels of satisfaction.
This represents a significant contribution (about
10 per cent) to the training of Australia’s researchers
and science-based professionals. CSIRO is developing
strategies to improve linkages with universities
further, including through increased training of
research students, and also to increase its training
of post-doctoral researchers.
2 :
c s i r o
C S I R O ' s P e r f o r m a n c e
a n n u a l r e p o r t 0 0 – 0 1
[33]
The level of repeat business continues to remain high
at approximately 70 per cent for all contracts across
the Organisation. The range of variability of repeat
business across Divisions remains similar to the
previous year, from 40 to 99 per cent.
CSIRO’s 22 Sector Advisory Committees, involving a
total of over 235 clients, stakeholders and partners
from both the private and public sectors, also provide
an important feedback mechanism.
Steering committees or similar means of joint project
management were used for approximately 44 per cent
of contracts. Where it is not practical to have a steering
committee every effort is made to establish and
maintain an ongoing rapport with the customer.
A sample of comments from customers includes:
“We got what we agreed; when we wanted it;
in an acceptable form. Professional look.”
“There are no other organisations in Australia who
have the range of expertise and knowledge in the
research area.”
“Relationship with CSIRO has been great. We don’t
have any other issues with CSIRO like we do with a
lot of others. An ability to actually go to you and talk
is excellent.”
“Project proposals have been very high quality, they
always have been and continue to be one of the best
that is received. A lot of forethought goes into
them.”
“Commercialisation and exploitation is very well
done.”
“CSIRO’s input into this area has probably resulted
in an extra $200 million in revenue (to the industry)
each year based largely on its delivery of the world’s
highest yielding cotton varieties with very
competitive quality attributes.”
Where adverse comments were made, two issues stood
out - the need for timeliness and appropriate reporting
styles to meet the needs of the client. Some customers
also perceived the price as being too high and that
costs are sometimes prohibitive compared with other
research providers.
These issues are being addressed in various ways
including specific actions detailed in the new Strategic
Action Plan. The outcomes from the Pricing Review,
which forms part of the Government’s Reform Agenda,
will also have a bearing on how CSIRO will address
cost and pricing issues with its customers in the future.
A pilot study to test a new approach to measuring
customer satisfaction using the Comparative Value
Analysis approach was conducted during the latter part
of the year and will be rolled out through the whole
of CSIRO in the 2001-02 financial year. One aspect of
this program will focus on improving key account
management and customer relationship building; the
other will focus on overall customer satisfaction with
the quality and price of CSIRO’s offer versus that
offered by other R&D suppliers.
“Regarding overall reporting and outcomes, you just
can’t fault it. For the two projects that I have been
closely involved with, we have a model that is state
of the art.”
2 : C S I R O ' s P e r f o r m a n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[34]
Indicator 6: Adoption and Impact of Research
This indicator assesses the significance or impact
of CSIRO’s work. The indicator looks at examples of
CSIRO-developed practices, instruments/products, and
processes adopted by users in industry, Government and
the community, or changes in user practice in response to
policy advice provided by CSIRO.
From the world-class hybrid car and clean, green
electricity to new foods, pharmaceuticals and
environmental care, CSIRO’s latest research is making a
real difference to Australia’s quality of life. The research
achievements listed in this Report all occurred during
the financial year 2000-01. A complementary publication
Creative Solutions describes a number of CSIRO’s
significant achievements and outcomes over the last
three years.
The research is reported by CSIRO Sectors, grouped into
Alliances (Manufacturing, Information and Service
Industries; Minerals and Energy Industries; Environment
and Natural Resources; and Agribusiness Industries).
In accord with reporting requirements under the CAC
Act, we also report on factors and trends influencing
each Sector, how they impact on research, and the
strategies CSIRO has developed to optimise our
contributions.
Index
Manufacturing, Information and
Service Industries
Environment and Natural Resources
Built Environment
36
Chemicals and Plastics
38
Information and Communication Technologies
40
Integrated Manufactured Products
42
Measurement Standards
44
Pharmaceuticals and Human Health
45
Radio Astronomy
47
Services
49
Minerals and Energy Industries
Energy
51
Mineral Exploration and Mining
52
Mineral Processing and Metal Production
54
Petroleum
55
2 :
c s i r o
Biodiversity
57
Climate and Atmosphere
58
Land and Water
60
Marine
62
Agribusiness Industries
Field Crops
64
Food Processing
66
Forestry, Wood and Paper Industries
68
Horticulture
70
Meat, Dairy and Aquaculture
71
Textiles, Clothing and Footwear
73
C S I R O ' s P e r f o r m a n c e
a n n u a l r e p o r t 0 0 – 0 1
[35]
Manufacturing, Information and Service Industries >>
Built Environment Sector
Industry Context
CSIRO’s Strategic Response
The Built Environment is the nation’s largest asset. Built
Environment industries (construction, transport, utilities)
generate 17 per cent of the nation’s economic output,
employ 15 per cent of the nation’s workforce and
contribute 7 per cent in exports.
CSIRO’s response is focussed on sustainable principles
that aim to achieve economic growth and improve
living standards, while protecting and enhancing the
environment. This has followed a comprehensive review
of the business environment to address the effects of
globalisation of supply chains and R&D, the path to
market, market reform and deregulation, environmental
imperatives and the requirements for particular research
skills. Particular attention has been given by the Sector
Advisory Committee and CSIRO to the issue of
weaknesses on the demand side affecting the paths to
market, in particular the lack of receptiveness to R&D
among many Built Environment Sector industries.
Some key issues shaping Australia’s built environment
are:
■
the environmental pressures of human settlements
(environmental noise, poor air and water quality,
transport congestion and end use energy
inefficiency);
■
national water supply is facing severe population
and environmental pressure and there is failure
to re-engineer stormwater and wastewater as a
resource;
■
■
■
■
■
increasing cost of national infrastructure is creating
demand for increasingly sophisticated tools for
planning and management;
poor information flow in the construction industry
is producing operating inefficiency, errors and waste;
performance-based design codes and standards are
critical to innovation in building design and materials
selection;
a large sectoral balance of trade deficit in built
environment services indicates a need for greater
development and application of IT and automation
locally;
the health and productivity effects of poor indoor
environments;
■
environmental sustainability is driving the
construction industry to increase recycling of
construction material and reduce waste; and
■
the effect of e-business on movement of people
and goods.
Research areas are consequently focused strongly on
the intended path to market. These include:
■
intelligent transport systems;
■
optimising infrastructure networks;
■
integrated design and construction;
■
smart coating technologies;
■
new generation building;
■
fire science and technology;
■
infrastructure performance and service;
■
urban water;
■
indoor environment;
■
low energy accelerated processing;
■
solid waste reactivation; and
■
re-engineering windows and facades.
2 : C S I R O ' s P e r f o r m a n c e
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[36]
Research Achievements
Commercialisation of award winning technology.
Successful commercialisation of the Align 3D technology
was achieved with the sale to a ‘spin-off’ company,
Quantm Ltd. The Align 3D technology is vertical and
horizontal route optimisation software, which helps cut
project planning time by up to a third. Alignment
construction cost savings are in the order of 20 per cent
or higher. The technology won the Australian Technology
Award for the best public sector new technology in 2001.
Two new Cooperative Research Centres. CSIRO has
provided support for the creation of two new
Cooperative Research Centres. The new Cooperative
Research Centre in Construction Innovation will be
located in Brisbane and will operate in partnership
with Queensland University of Technology.
The new Cooperative Research Centre for Innovative
Wood Manufacturing will be located in Melbourne
and have links with CSIRO’s Materials Engineering
Laboratories, which support research in surface
engineering, smart coatings and new composite
materials.
CSIRO urban water initiative. Following a two-year
national feasibility study, CSIRO Urban Water
Technologies has been created with strong support from
the Water Services Association of Australia, to provide
urban water consulting, research services and
technologies to industry. Major contracts have been
signed with water authorities in Australia and New
Zealand and initiatives have commenced in Asia in
conjunction with leading Australian construction and
engineering firms.
An intelligent freight transport system. Problems of
traffic congestion and transport delays are estimated
to cost $5 billion a year in extra travel time and vehicle
operating costs. The first phase of an extensive
multi-divisional program to develop a national freight
strategy is now underway. ITS Connect provides for
a pilot corridor in a major city to use advanced ITS
technologies and techniques to study freight
movements and develop new information-based
products and services for the transport industry. This
will provide benefits to State and commercial transport
operators in saved time and cost, reduced wear and
tear on vehicles and infrastructure and greater
predictability in their business operations as they
enter the e-business era.
2 :
c s i r o
New fire, science and technology laboratory. Approval
was received for the construction of a new $14 million
facility at North Ryde in Sydney. This will enable CSIRO
to provide one of the world’s few fully integrated fire
facilities. It will offer planners, architects, engineers,
designers, builders and regulators comprehensive
solutions to the challenges posed by public safety
and fire issues in commercial and public buildings
and industrial plants, and Australia’s bushfire-prone
environment.
Termite management breakthrough. CSIRO’s termite
group has played an active role in the research and
development into alternatives to prevent termite attack
in built structures, and baiting methods that attempt
to eradicate a colony. Alternative chemical barriers now
include non-repellent insecticides that kill termites while
they burrow, but which are non-toxic to vertebrates.
Physical barriers include a choice of termite resistant
polymers for communication cables, pipes and sealants,
and systems that prevent them getting through concrete
slabs.
A major achievement has been the identification of
a pheromone, a chemical attractant, that the termites
use in communication and foraging. The ubiquity of this
pheromone among termite species makes it suitable as
a feeding stimulant for baiting systems. Physical and
chemical cues that promote tunnelling behaviour have
been identified, with potential use in baiting system
design and are being tested in commercial bait
stations.
Larry Little
Building, Construction and Engineering
Tel (03) 9252 6114
Email [email protected]
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Chemicals and Plastics Sector
Industry Context
The chemicals and plastics industry produces both
household products that are directly supplied to
consumers and a broad range of materials that
underpin Australia’s manufacturing, agriculture and
mining sectors. The industry has three distinct
segments with opportunities in each for investment and
growth: the innovator segment which comprises new
firms supplying high-tech products to a large global
market; an existing brownfield manufacturing
commodity chemicals segment; and lastly a greenfields
world-scale export-focused petrochemical segment.
We believe that the future of the chemicals and plastics
industry in Australia, to which CSIRO research can
contribute, lies with the innovator segment of the sector.
The industry sector in Australia overall involves
2 500 firms ranging from large companies supplying
established commodity products, to small formulators,
plastics processors and high-tech start-up companies
with fewer than 30 staff supplying specialised
downstream market needs. Currently 40 large foreign
and 20 large Australian firms supply 70 per cent
of Australia’s chemicals and plastics market.
There are three key strategic drivers for the industry:
■
sustainability of resource production and
manufacturing, recognising the need for
environmental protection, economic viability
and social responsibility;
■
the impact of new developments in biotechnology
and nanotechnology; and
■
the nature and pace of technical improvements
and competitive changes.
The chemical industry worldwide is therefore continuing
its hundred-year history of major innovation with a
marked trend towards biotechnology developments, life
science initiatives and to products and processes based
on nanotechnology. Industry restructuring in Australia
and overseas is continuing with the formation of
traditional chemical firms, vertically integrated life
sciences companies and emerging new high-tech firms,
the latter both as start-up companies and as affiliates
of established multi-nationals. Increased focus on the
adoption of biotechnology and nanotechnology heralds
a marked shift in R&D from the more mature segments
of the industry.
CSIRO’s Strategic Response
We envisage a sustainable and dynamic high-tech
chemicals and plastics industry in Australia - one that
will underpin industrial growth and capture significant
domestic and export markets. In line with this vision
and within this industry context, our primary intent will
be to support the innovator segment of the sector by
further building our strategic research capability in
selected high-potential areas including nanotechnology,
biotechnology and polymer engineering.
These core capabilities provide three technology
platforms for future research and development of
improved products and processes:
Biodiscovery - examples include biodegradable
polymers, biostable materials, crop protection
products, biosourced raw materials, animal feed and
health, pharmaceuticals and fine chemicals, enzymes,
bioremediation, biomining, energy cropping.
Sustainable production and manufacturing - examples
include water treatment, specialty chemicals, clean
chemical production and processing, fumigant
replacements, recycling, food processing, product
life extension, desalination, functional fluids.
Molecular engineering/architecture - with applications
in diagnostics and health care (eg drug delivery and
biomedical devices), advanced materials (eg security
devices, composite materials, smart coatings, tailored
resins), and nanotechnology (eg flat screen displays,
energy storage, biological sensors, micromachines
and plastics additives).
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Research Achievements
New biodegradable packaging. CSIRO, in partnership
with the University of Queensland and Swinburne
University of Technology in the Cooperative Research
Centre for International Food Manufacture and
Packaging Science, has successfully developed new
biodegradable packaging materials based on starch.
The raw material is derived from a renewable resource
and the products will degrade in compost heaps.
Further improvements have been made with the
inclusion of nanocomposite additives to the starchbased film. This aids in the processing and gives
increased strength and clarity. The technology is in
the process of being licensed to a company, which
will produce the biodegradable materials locally and
develop the technology globally.
Export packaging for table grapes. CSIRO, in
collaboration with the Department of Natural Resources
and Environment, and the Cooperative Research Centre
for International Food Manufacture and Packaging
Science, has developed a new slow release packaging
for the export of table grapes. During shipment
overseas, table grapes are currently treated with inpackage fumigation of sulphur dioxide to retard the
growth of mould. This new plastic liner minimises the
unsightly bleaching damage and sulphite residues in
the grapes. Thus the grapes arrive in a better condition
and should attract higher prices for Australian
exporters. International commercial marketing of the
product is planned for next year with a local licensee
of the technology.
Commercialisation of boron technology. CSIRO’s strong
intellectual property position and in-house knowledge
in boron chemistry has led to a licensing agreement
between CSIRO and a start-up company, Boron
Molecular Pty Ltd. The technology license focuses on
boron chemistry and involves using new methods to
produce pharmaceuticals, fine chemicals, new materials
and catalysts.
New fumigant. Progress has been made in
commercialising carbonyl sulfide, a new fumigant for
grains developed by CSIRO. The new fumigant has the
potential to replace many uses of methyl bromide, a
chemical being phased out under the Montreal Protocol
because it contributes to destruction of the ozone layer.
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SICOR company. SICOR™ is a revolutionary new
technology developed by CSIRO to engineer the surface
of polymers and polymeric composites; it demonstrates
a number of key advantages over current technologies.
A spinoff company will be formed later in the year to
commercialise the SICOR™ technology.
Cleaning up pesticide residues. Major progress has
been made in the development of a commercial product
for the bioremediation of chemical pesticides. Trials
have achieved a significant reduction in pesticide
residues in both contaminated run-off from irrigated
cotton operations and in surface contaminated
horticultural commodities. The cotton trial, conducted
by CSIRO’s licencee Orica Pty Ltd on a cotton farm in
New South Wales, was successful, reducing residue
levels in more than 80 000 litres of contaminated water
by 90 per cent in just 10 minutes.
Quickstep Technologies. The Quickstep™ process is
a fast fabrication method for making very high quality
composite products without using an autoclave. This
groundbreaking Australian technique looks set to
revolutionise the aerospace, boat and car building
industries by making advanced polymer composite
technology affordable. CSIRO has completed trials of
the technology in conjunction with a local aerospace
manufacturer, which confirmed the quality of parts
produced by the process, and the capacity of the
technology to reduce the costs of manufacture. This
success in the development and validation stage has
led to the formation of a new start-up company,
Quickstep Technologies, which is further developing
and commercialising this revolutionary process. The
company is now in negotiation with several major
international aerospace and automotive companies,
with the aim of integrating the process into production
lines within the next 2-3 years. CSIRO is a major equity
partner in the company, as well as the primary R&D
subcontractor.
Dr Greg Simpson
Molecular Science
Tel (03) 9545 2519
Email [email protected]
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Infor mation and Communication
Technologies Sector
Industry Context
The Information and Communication Technologies (ICT)
Sector encompasses telecommunications and computer
networking, mobile communications, electronic content
management and processing, electronic commerce, and
more generally all forms of electronic communication,
computer and software systems.
Globally, the ICT Sector continues to be one of the
fastest growing industries. Medium term predictions
include:
The report noted that the ICT Sector plays a crucial role
in supporting the global move towards the knowledge
economy and delivers ‘first mover’ advantages across
industry in general. It proceeded, however, to document
a falling trend in Australian R&D investment in ICT, the
difficulties with transferring R&D resource to the sector
against traditional needs and the ICT investment gap
that is developing between Australia and other first
world countries.
continuation and acceleration of ‘Moore’s Law’
(which predicts a doubling in computer power every
18 months) drawing large investments with short life
cycles in the technologies underlying enhanced ICT
infrastructure;
Within CSIRO, research in this Sector also contributes to
many of the projects carried out in the 21 other
Sectors.
■
increasing penetration of computer systems,
communication access and internet connectivity for
business, entertainment, travel and social interaction;
■
increasing importance of electronic content as an
economic driver;
■
internet and enhanced Internet Protocols replacing
other network solutions;
■
roll-out of third generation mobile systems and
always connected devices;
■
rapid development and deployment of automation in
e-business integration; and
■
market transformation flowing from automated
speech understanding systems.
In considering the above, CSIRO has evaluated options
relating to its R&D position in the market. A buoyant
ICT industry would support export growth, improve the
balance of trade, lift our technology leadership
reputation, attract investment and secure a share of
future markets. Australian Industry expends significantly
in ICT R&D but focusses on product enhancement more
than medium term and sustained breakthrough research
efforts. Universities and the proposed new Centre of
Excellence have a role to pursue breakthrough research.
CSIRO aims then to undertake medium term research
(on a 3-5 year timeline) to create market transforming
intellectual property developed and delivered in concert
with commercial interests.
■
At the local level, the most significant recent
development has been the review of innovation in
Australia leading up to the Government’s investment
through Backing Australia’s Ability. The report of the
working party established by the government to review
the ICT Sector advised:
“As ICT is so fundamental to competitiveness it is
essential that Australia act to strengthen its
investment in ICT research, training and technology
transfer infrastructure to ensure our weakness does
not constrain the country’s economic growth
potential.”
CSIRO’s Strategic Response
While CSIRO is reviewing its research directions given
this role, we expect the following broad areas to play a
prominent part in our future work.
■
mobile connectivity;
■
broadband applications;
■
high bandwidth components;
■
electronic content, interaction and automation;
■
e-business and e-market systems; and
■
future internet.
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Research Achievements
Wireless network to the world market. Radiata Pty Ltd
completed the development of integrated circuits that
support a wireless local area network based on CSIRO
patents. This technology will enable the wireless
connection of computers, video cameras, televisions
and other consumer devices. In November 2000 the
USA networking equipment company CISCO Systems
Inc announced that it had acquired Radiata for
$US300 million from its Australian owners. CSIRO
will receive royalties from worldwide sales of CISCO
products that apply this technology. CISCO will also
retain the research and development team located
in Sydney. This is a first class example of how CSIRO
technology and skills can create wealth and jobs
in Australia.
Great graphics for pocket PCs. CSIRO, as part of its
work with the world wide web consortium, has created
a Scalable Vector Graphics Viewer (SVGV) for pocket
computers - bringing high-quality, sharp and colourful
renditions of maps and pictures to these popular
devices. The software provides the building blocks for
new mobile applications such as interactive street
directories, building plans or any drawing data. Being a
vector format, SVGV images remain clear and detailed,
no matter how much they are zoomed or rescaled.
Multibeam antennas, save space and money. TST
Kommunikations-technik GmbH, Germany, has
purchased four, 4.5 metre diameter multibeam antennas
developed by CSIRO. This advanced antenna technology
targets the European direct TV satellite market. The first
three multibeam antennas and 15 feed systems will be
delivered to Société Européenne des Satellites (SES),
the operator of ASTRA, Europe’s leading direct-to-home
satellite system, and installed at SES-ASTRA’s satellite
control facilities at Château de Betzdorf, Luxembourg.
From this location, each antenna will communicate with
many satellites at the same time, substantially reducing
base station infrastructure and maintenance costs.
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First Australians Gallery. The curators of the Gallery of
First Australians, at the National Museum of Australia,
required an innovative design for their Welcome Space.
The design had to handle 300 people per hour and
provide a compelling, immersive, interactive experience
of diverse aspects of Aboriginal culture. Together with
the curators and artistic consultants, CSIRO developed
a unique system incorporating song, dance and imagery
from the Museum’s collection with position and motion
sensors, surround-sound and a wide range of
customised special effects. The result combines
a premier showcase of Australia’s advancement in
technology with an emotionally engaging interactive
experience of welcome songs and dances, leading to
a better appreciation of an important aspect of
Australia’s heritage.
Middleware technology evaluation reports.
In cooperation with product vendors, CSIRO has
produced a set of reports on the computer system
technologies that support internet-based computing
and business-to-business e-commerce, called
middleware. The reports represent a rare source of
independent advice and are required reading for
software architects, project managers and developers
struggling with the many features and capabilities of
different middleware technologies. These reports
facilitate the choice of suitable products for business
needs, helping to eliminate the risk of critical failures
and increase the overall satisfaction level of customers
with the products they buy. The reports are available
through CSIRO Publishing on the world wide web at:
http://www.publish.csiro.au and have been widely
promoted through industry seminars around Australia
in association with Software Engineering Australia.
Dr Rhys Francis
Mathematical and Information Sciences
Tel (03) 8341 8231
Email [email protected]
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Integ rated Manufactured Products
Sector
Industry Context
CSIRO’s Strategic Response
The Integrated Manufactured Products Sector covers
machinery and equipment (especially transport
equipment), instruments (especially measuring and
testing instruments), methods for metal-based
manufacturing (die casting, welding, coatings, alloys,
forging and casting), manufacturing processes (including
design and rapid prototyping) and the operation of
distributed manufacturing enterprises.
CSIRO’s current customer base is diverse and includes
major local and global companies as well as small and
medium enterprises (SMEs). Many Australian
manufacturers are primarily interested in incremental
improvements in products and processes.
Our research is directed to assisting the growth of
Australian industry by targetting the following goals:
■
lower energy use and waste to both reduce cost and
maintain licence-to-operate in an increasingly
constrained environmental framework;
■
reduce weight and improve energy efficiency in
transport equipment;
■
improve quality and productivity by developing
measurement, inspection and quality assurance tools;
■
create and grow businesses based on sensing and
monitoring;
■
create a vertically integrated minerals-metal
production-manufacturing chain based on magnesium
and titanium alloys;
■
improve productivity, quality and cost-effectiveness in
manufacturing processes;
■
be world competitive in customised and nichevolume production;
■
operate in dynamic, global supply chains through
effective distributed manufacturing systems;
■
create and grow businesses based on biomimetic,
nanoscale manufacturing; and
■
reduce costs of existing micromanufactured products
and develop new, differentiated high-value products
based upon small-scale physical system
manufacturing.
Some significant aspects of the environment for
manufacturing are:
■
product development lead time and product life cycle
are now almost half what they were ten years ago.
This narrows the window of market opportunity;
■
customers demand products that are customised to
their needs and local conditions;
■
there is a continuing need for differentiated products,
often to fill niche markets;
■
tools are required for facilitating globally-distributed
manufacturing;
■
adaptable/reconfigurable manufacturing systems,
information and communication technologies, and
modelling and simulation are key to manufacturing
capabilities; and
■
manufacturing processes that minimise waste and
energy consumption will be necessary to respond to
increasingly stringent community expectations and
environmental regulation. Use of environmentally
acceptable processes could well become a
prerequisite to being able to export into particular
markets.
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Research Achievements
ECOmmodore. CSIRO has developed an advanced hybrid
petrol-electric drive train for the Holden ECOmmodore.
The car uses a modified, 2 litre, petrol engine in
parallel with a switched reluctance electric motor drive.
The motor drive is connected to super capacitors, and
batteries. The car body is based on a Holden
Commodore that features improved aerodynamics, low
rolling resistance tyres, and a lighter weight
construction. The hybrid technology, with the improved
car body, can reduce fuel consumption to half that of
the equivalent conventional car, without loss of
performance or drivability. Urban air pollution is
reduced by as much as 90 per cent compared to the
equivalent production car with only a small cost
increase.
Welding of aluminium castings for aerospace
applications. Welding repair procedures have been
developed by CSIRO for the reworking of large
aluminium castings. An exhaustive mechanical testing
program provided data to support the adoption of high
quality repair procedures in manufacturing processes.
The technology transfer included a week of training for
aerospace personnel in the CSIRO laboratory.
Corrosion prediction modelling. The CSIRO, Defence
Science and Technology Organisation and BAE SYSTEMS
are developing software to predict the time to onset of
corrosion on aircraft. A highly innovative model has
been developed and validated against corrosion
chamber tests.
CSIRO signs Memorandum of Understanding. Australian
Magnesium Corporation Ltd (AMC) and CSIRO signed a
Memorandum of Understanding in December 2000
under which AMC will outsource a large part of its
future research and development requirements to
CSIRO. Full implementation of the MOU will depend on
the successful raising of investment funds for a
proposed $1.3 billion commercial plant. Two major
research areas are involved, magnesium process and
production technologies. Additionally, CSIRO will provide
technical marketing support to AMC. The MOU builds on
a decade of collaborative research between CSIRO and
AMC in magnesia and magnesium product related
research. It follows a decision by the Australian
government (dependent on the commercial plant going
ahead) to financially support CSIRO’s late stage
research and development directed towards the
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refinement and commercialisation of AMC’s magnesium
producing technology, which is jointly owned by AMC
and CSIRO.
Reducing greenhouse gas emissions. CSIRO and the
University of Queensland researchers have identified a
replacement for sulfur hexafluoride, the worst
greenhouse gas known, for its use as a protective cover
gas in the processing of molten magnesium metal.
Working within the Cooperative Research Centre for
Cast Metals Manufacturing and in association with
Australian Magnesium Corporation, these researchers
have patented a new technology based on a common
refrigerant gas that is cheaper and more effective than
sulfur hexafluoride. This technology could reduce
greenhouse gas emissions by over 5 million tonnes of
carbon dioxide equivalent per year worldwide. The
cover gas technology will be offered to Australia’s
emerging magnesium industry. Commercialisation
opportunities are currently under evaluation.
Innovations in welding technology. CSIRO has
developed and commercialised a new gas tungsten arc
welding technology, known as key-hole gas tungsten
arc welding. This technology is now available on the
market to provide full penetration welding for the food
and beverage, transport, and oil and gas industries.
This patent-protected technology has been taken up by
Australian industry where it is delivering major savings.
The technology has been licensed to Meanderlyn Pty
Ltd, and is being marketed globally.
Clearer vision. Millions of people worldwide now have
clearer vision due to pioneering work on spectacle lens
design. Unique tools for designing spectacle lenses
have allowed SOLA International to develop innovative
new lenses, including better progressive glasses and
wrap-around prescription sunglasses. This work done
in conjunction with CSIRO, has contributed nearly
$1 billion worth of lens sales per year for SOLA.
Treating industrial effluents. CSIRO has developed a
catalytic process for treatment of coloured industrial
effluents. The process has been tested and found
effective for a wide range of effluents, including that
from the pulp and paper, alumina, textile and tannery
industries. A pilot plant trial commenced at PaperlinX
Pulp Mill in Morwell, Victoria in May 2001.
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Improved magnesium diecasting technology. CSIRO’s
advanced magnesium diecasting technology is the
subject of commercial plant trials in the US and the UK
where production cost savings have been demonstrably
better than predicted. Three commercial applications are
now in production and a further eight components are
under development. Six new potential companies are
considering full license take-up of the technology.
License agreements are in place with all industrial
participants. A spin off company InMag Pty Ltd has
been formed initially to establish a comprehensive
business plan and ultimately to commercialise the
technology.
Atomic mirrors. CSIRO scientists, in collaboration with
the University of Melbourne, have fabricated a high
quality, atomic magnetic mirror, an essential component
of their innovative design for an atom interferometer.
This research is at the forefront of the burgeoning new
field of atom optics. The team has transferred to
Swinburne University to bring together Australia’s
expertise in Atom Optics & Ultrafast Spectroscopy.
Standards are of increasing importance in international
trade. A Global Mutual Recognition Arrangement (MRA)
has been established between National Measurement
Institutes to provide mutual recognition of national
measurement standards and calibration certificates.
Parties to this arrangement will have to demonstrate
the equivalence of their national standards through
participation in a program of ‘key comparisons’ and the
integrity of their calibration services through
accreditation of those services to ISO 17025 or
equivalent.
The Asia Pacific Economic Cooperation has recognised
the importance of measurement standards in promoting
trade. This has led to significant work for the NML in
assisting the development of measurement
infrastructure in Asia Pacific countries.
CSIRO’s Strategic Response
CSIRO aims to provide value to Australia through
activities in ten key areas:
■
basic standards R&D;
■
primary standards R&D;
■
international recognition;
■
gas mixture standards;
■
high flow standards;
■
metrology in medicine and health;
■
standards and calibration services;
Industry Context
■
accreditation of calibration services;
The Measurement Standards Sector is concerned with
physical standards of measurement. Measurement
standards are an infrastructural component of the
economy: physical standards underpin the national
standards and conformance infrastructure that provides
the technical basis for orderly commerce, national and
international trade, technical harmony between
manufacturers and Governmental regulatory activities.
CSIRO’s work for this sector is undertaken in the
National Measurement Laboratory - National Facility
(NML).
■
leadership in the national measurement system; and
■
technology transfer and Asia Pacific cooperation.
Dr Ian Sare
Manufacturing Science and Technology
Tel (03) 9545 2787
Email [email protected]
Measurement Standards Sector
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Research Achievements
Chemical metrology. Australia needs accurate reference
gas mixtures on which to base the analysis of the
energy content of natural gas, which forms a major
export commodity. CSIRO has established a facility that
enables it to prepare reference gas mixtures with an
improvement in accuracy of approximately a factor of 10
over current commercial capabilities. CSIRO participates
at the highest level of accuracy in international
comparisons of gas mixture preparation. A comparison
of reference mixtures of carbon monoxide in nitrogen
is presently being conducted with leading international
laboratories.
Frequency standard. A two-year comprehensive study of
the temperature behavior of the laser-cooled ion cloud
at the heart of the CSIRO’s trapped ion microwave
frequency standard has recently been completed. The
system is now being reconfigured for regular operation
as a frequency standard.
Portable ultrasound standard. A portable measurement
standard for ultrasonic power is required for the
proficiency testing of the calibration services for some
14 000 ultrasound physiotherapy devices in use in
Australia. The first prototype of this standard is close to
readiness for evaluation tests by the user community.
Major study in South Africa. CSIRO participated in an
Australian-South African team which was engaged by
the South African government to evaluate the
standards, quality, accreditation and metrology
infrastructure in South Africa. This major international
study provided comparative data on standards and
conformance infrastructure in sixteen nations and is the
most comprehensive current analysis of the subject.
Dr Barry Inglis
Telecommunications and Industrial Physics
Tel (02) 9413 7460
Email [email protected]
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Phar maceuticals and Human
Health Sector
Industry Context
The Pharmaceuticals and Human Health Sector focuses
on health outcomes realised primarily through the
pharmaceutical industry. It encompasses
pharmaceuticals, diagnostics, nutritional products,
in-vivo medical devices and other health care products.
The global pharmaceutical industry is large ($300 billion
per annum) with large companies, each of which has
less than four per cent of the global market. Recent
science and technology trends (high throughput
screening, combinatorial chemistry, an explosion of
genetic information) provide a new era of molecular
discovery and design. Biotechnological approaches are
now fundamental and many large, diversified companies
are moving towards a ‘life sciences’ focus. Numerous
small biotechnology companies provide drug
development opportunities. R&D underpins the industry
and firms invest substantial amounts in R&D.
Key drivers are:
■
time and cost to market - cost from discovery to
drug registration averages $150 million; development
times are increasing and product life cycle times
decreasing;
■
innovation deficit - a global shortfall in product
development;
■
genomics and biotechnology processes;
■
diagnostics, biomarkers and the changing patterns
of disease; and
■
cost of health care.
There are over 140 companies in the Australian
pharmaceutical industry, including a number of
significant majority Australian-owned companies. Ninety
per cent of these firms engage in R&D activity, often at
significant levels. The ability to capture the benefits of
R&D has been hampered in the past by the absence of
a culture of pharmaceutical development to translate
research outputs to products. Government policy
stemming from the Pharmaceutical Development Plan
of 1990 has assisted in redressing this impediment.
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CSIRO’s Strategic Response
An International review of the research conducted in
this Sector has been undertaken. The reviewers
reported that the quality of the science was excellent
but suggested that the activities should be re-focussed,
with a reduction in the number of components from
eight to four. As a result of staff returning to CSIRO
from the Biomolecular Research Institute the final
outcome was to focus the research effort into the five
components shown below. The process to implement
these changes is now being finalised.
CSIRO research will be aimed at adding value to the
industry in the following areas:
■
diagnostics technologies;
■
biomaterials for ophthalmics and orthopaedics;
■
gene therapy for cancer;
■
structure for therapeutic design; and
■
protein targets and therapeutics.
Research Achievements
Hepatitis B. A research collaboration with AMRAD
Operations Pty Ltd has produced AM365, a promising
new compound for the treatment of hepatitis B virus
(HBV) infection. Phase 1 clinical trials with AM365 were
successfully completed in late 2000 with good results.
Phase 2 clinical trials in persons with chronic HBV
infection recently commenced in both Australia and
Asia.
Gene therapy. After a successful evaluation of CSIRO’s
sheep virus-based gene delivery technology, a European
biotechnology company is currently negotiating a
research and development agreement to co-develop the
technology for vaccination against certain infectious
diseases, pancreatic cancer and liver disorders, liver
cancer and metabolic diseases. This technology has
also been exclusively licensed to a major Australian
pharmaceutical company for use in developing a gene
therapy for prostate cancer. This company is currently
supporting CSIRO and the Oncology Research Centre at
the Prince of Wales Hospital in Sydney to finalise
preclinical evaluations of the therapy in mouse models
and to assist the company in seeking regulatory
approvals from the US Food and Drug Administration
to trial the therapy in humans.
Relenza™. The anti-influenza drug Relenza was
launched in Japan in December 2000, and is now
approved for treatment in 51 countries, including major
markets in the United States, the European Union and
Japan. These three markets alone account for about
85 per cent of the world’s pharmaceutical market,
with Japan representing approximately 20 per cent.
Structures of major disease target proteins revealed. The
three dimensional structures of four key proteins that
are targets for the development of new therapeutic
agents against diseases such as cancer, psoriasis,
arthritis and respiratory ailments, have been solved
during the past year. In collaboration with the Ludwig
Institute for Cancer Research, the Biomolecular Research
Institute, the Cooperative Research Centre for Cellular
Growth Factors, and the Walter and Eliza Hall Institute,
CSIRO scientists have determined the structures of the
two members of the epidermal growth factor receptor
family as well as a cytokine receptor to atomic
resolution. In a separate project, in collaboration with
the Biomolecular Research Institute and the
pharmaceutical company Biota Holdings Limited, the
structure of the protein that facilitates the infection
process by paramyxoviruses was determined. The
determination of these structures was assisted by the
monocapillary X-ray optics developed by CSIRO in
collaboration with the University of Melbourne. These
structures will provide the basis for structure-based
drug design programs which will be facilitated by a
supercomputer facility installed at CSIRO this year.
Professor Richard Head
Health Sciences and Nutrition
Tel (08) 8303 8865
Email [email protected]
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Radio Astronomy Sector
Context
CSIRO’s effort in this Sector centres on the Australia
Telescope National Facility (ATNF), which has
‘advancement of knowledge’ as its primary goal. The
Facility has produced a steady stream of internationally
recognised discoveries, and both the publication rate
and the citation rate continue to increase. International
linkages for Australian science, and technology spinoffs, are two significant consequences of activity in this
Sector.
■
position Australia for participation in future major
international facilities, particularly the SquareKilometre Array project; and
■
conduct an effective outreach program to increase
public awareness of Australia’s achievements in
astronomy and attract young people to a career
in science.
Continual upgrading of the Facility is essential if it is to
remain world-class. Upgrades funded by the first round
of the Major National Research Facilities program are
providing state-of-the-art millimetre-wave receiving
systems and extending the Australian network of
telescopes used for Very Long Baseline Interferometry.
These upgrades will be completed by 2002. The new
capabilities they bring will dominate the operations and
science of the National Facility.
CSIRO instrument enhances telescope in Chile.
A Memorandum of Understanding between the Onsala
Space Observatory and the ATNF gives Australian
astronomers access to the Swedish-ESO Submillimetre
Telescope (SEST) in Chile. As part of the arrangement,
Australia has provided observing support and the
ATNF has built for SEST a signal-processing system a wideband ‘digital correlator’ - to enhance the
telescope’s ability to observe molecules in space.
The correlator has now been delivered to SEST and
commissioned by ATNF staff.
Internationally, radio astronomy is carried out primarily
through National Facilities, which support universitybased users. International facilities will become
increasingly important over the next decade.
CSIRO’s Strategic Response
The critical overall objective of the ATNF is to remain
at the forefront of world radio astronomy. As a National
Research Facility, the ATNF enables its users 80 per cent of whom are from outside CSIRO to carry out leading-edge radio astronomy.
The ATNF has identified five strategic objectives to
satisfy its users. They are to:
■
operate the National Facility for radio astronomy
research;
■
maintain the ATNF’s forefront position by extending
the Facility through continuing introduction of stateof-the-art equipment and instrumentation;
■
exploit the upgraded Facility (particularly its
millimetre-wave capabilities) to make new
astronomical discoveries;
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Research Achievements
Monolithic microwave integrated circuits. CSIRO
engineers have designed high-speed circuits to use
in Australia Telescope instruments, as part of a broader
program to develop a range of such circuits for
advanced communications systems. The circuits are
made from Indium Phosphide, a new material that
works extremely well at high frequencies. Some of the
ATNF circuits have been incorporated into instruments
and are now being used on the telescope. Others have
had only preliminary tests, but with promising results:
one, made with a new process, operates five times
faster than conventional circuits. The project has
confirmed that it is feasible to mass-produce highperformance circuits for high frequencies.
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Australia Telescope ‘opens its eyes’ at millimetre
wavelengths. In November 2000 the Australia Telescope
Compact Array had its first successful observing tests at
millimetre-wavelengths, using new millimetre-wave
technology developed specifically by CSIRO for this
purpose. The tests were a milestone in the upgrade of
the telescope being carried out under the Major National
Research Facilities program: this upgrade will make the
Compact Array one of the few telescopes of its kind able
to work at millimetre wavelengths. CSIRO now leads the
world in applying millimetre-wave integrated circuits to
astronomy. Trial millimetre-wave observing will start in
mid 2001 and routine observing in 2003.
Parkes surveys feed further international studies. Since
1997 the Parkes radio telescope has used a CSIROdesigned ‘multibeam’ receiving system to survey the
whole southern sky for neutral hydrogen gas, which
reveals the presence of otherwise unseen galaxies.
The major survey for galaxies was completed in 2000.
It identified faint and small galaxies and shows how
galaxies are distributed in the local universe. Survey
data were released to astronomers world-wide last year
and are now being used as a foundation for many
further studies, such as a program of the US National
Optical Astronomy Observatory to examine the rate and
pattern of star formation in nearby galaxies. A major
pulsar survey being carried out with the Parkes
multibeam system has now found more than 600 new
pulsars. About thirty of them may help solve a longstanding puzzle by turning out to be the sources of
some of our Galaxy’s gamma-ray emission.
Galaxy may push back time of earliest stars. The earliest
stars of the Universe may be much older than
previously thought. Using CSIRO’s Australia Telescope
and the Hubble Space Telescope, scientists have found
the strongest evidence so far for an entirely new kind
of galaxy in the early Universe. A small patch of the
southern sky has been imaged by both instruments.
One faint red dot in the Hubble picture corresponds to
a strong radio source seen with the Australia Telescope.
The distance of the source, and other characteristics,
suggests that it may be a galaxy undergoing much
more rapid star formation than we see in the Universe
today. Other evidence suggests that such galaxies may
be faint, but extremely common in the early Universe.
If so, that pushes back the epoch of maximum star
formation - when the Universe really got active - by
a long way.
‘The Dish’ tests Einstein’s warped space. In the most
precise astrophysics experiment ever made, Australian
and US astronomers have used CSIRO’s Parkes radio
telescope to measure the distortion of space-time near
a star 450 light-years (more than 4 000 million million
kilometres) from Earth, confirming a prediction of
Einstein’s general theory of relativity. They used a
pulsar - a small, rapidly spinning star that gives off a
stream of radio pulses - measuring the arrival times of
its pulses on Earth to within a tenth of a millionth of
a second. The pulsar orbits a companion star. According
to Einstein, this star curves the space-time around it.
The curved space-time should slightly delay the pulsar’s
pulses. The effect was found. Previous astrophysical
experiments have shown that general relativity is a selfconsistent theory, but this is the first independent test
using geometry.
Professor Ron Ekers
Australia Telescope National Facility
Tel (02) 9372 4300
Email [email protected]
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Ser vice Sector
Industry Context
CSIRO’s Strategic Response
The activities of the Service Sector are diverse,
encompassing wholesale and retail trade; health
services; finance and insurance; travel and tourism; and
government and professional services.
CSIRO has continued to develop its profile as a supplier
of R&D to the Service Sector. Through extensive
industry consultation we have identified and initiated
projects with considerable long term potential to deliver
competitive benefits to Australian companies.
Australia’s economy is now very much service-based.
Recent data show that service industries are growing
much faster than traditional sectors like manufacturing,
mining and agriculture. Finance and insurance is the
biggest sector by revenue generation in 2000-01
($304 billion). The service sector is the biggest
employer and generator of new jobs.
Growth and innovation in services are therefore
increasingly crucial to economic performance. While,
overall, services are not very R&D intensive, services
account for an increasing share of total Australian
business R&D, presently about one-third.
The main technology base for the Service Sector lies in
information and communications technologies (ICT).
Acquisition of technology is an important aspect of
innovation. ICT systems integration and customisation
is a key factor in improving productivity in service
firms. A huge range of new application areas within
service firms is opening up because of the Internet and
continuing trends in performance and cost of ICT
components. Examples are data mining, personalised
services and electronic service delivery.
Globalisation is a major issue for service industries
world wide. This is apparent in the substantial and
growing world trade in commercial services. The
Internet and on-line services are having an enormous
impact on globalisation.
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Our research is directed towards:
■
improving the effectiveness of decision making in
uncertain business environments by developing new
techniques and software implementations for
modelling, measuring and assessing risk;
■
improving productivity and competitiveness through
an integrated approach to gathering, analysing and
using information;
■
increasing the cost effectiveness of health care
delivery and outcomes through integrated health care
and health service delivery systems;
■
improving the access, quality and efficiency of health
care for Australia’s ageing and remote population
through telehealth technology;
■
improving the quality and cost effectiveness of
diagnosis and treatment through computer-aided
decision support and clinical advisory systems;
■
facilitating cost efficiencies and new business
opportunities, based on personalised and enhanced
service delivery in electronic commerce via the
creation of electronic trading environments;
■
improving delivery of goods and services at reduced
cost through improvements in supply chain
management;
■
achieving secure and cost effective protection of
physical, human and electronic assets through use of
intelligent vision systems;
■
improving significantly the efficiency and
effectiveness of asset monitoring through use of
advanced monitoring technologies; and
■
enhancing the process of drug discovery and
diagnostics by developing techniques to manage
massive amounts of biological information.
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Research Achievements
Electronic travel planner. CSIRO has completed a
prototype electronic travel planner in collaboration with
Viator, a travel technology small to medium enterprise.
The travel planner, known as TRIPS, creates detailed
itineraries based on user preferences, constraints and
conditions. TRIPS assembles transportation,
accommodation and day tours to produce a complete
itinerary best matching the user’s requests. The TRIPS
software prototype has attracted strong interest from
Sabre, WorldSpan and Galileo, major international
software and service companies in tourism.
Face recognition. Face Identification and Capture (FIAC)
combines System for Quick Image Search (SQIS) face
recognition with very rapid face location in live video.
A cost-effective, PC-based technology for automatically
tracking and recognising individuals, FIAC has potential
significant applications in area surveillance and the
retail industry. Several trials of the system are currently
underway with government agencies and private
industry.
Bioinformatics. CSIRO signed individual collaboration
agreements with Axon Instruments and Proteome
Systems Limited (PSL) for major new research initiatives
in bioinformatics. Bioinformatics is the application of
advanced information technology, mathematical and
statistical methods to convert raw biological data into
significant results. These agreements aim to develop
new high speed, high throughput instruments and
software systems for drug discovery and diagnostics for
the pharmaceutical industry, biotechnology companies
and academic researchers in medicine and agriculture.
CSIRO’s image analysis specialists will enhance the
precision of these instruments and develop ways of
analysing their output to extract meaningful biological
data from visual information. This will make the
laborious process of identifying and screening new
pharmaceuticals more efficient and more reliable.
Integrated compliance study. CSIRO worked with the
Australian Taxation Office (ATO) to investigate
compliance behaviour of individual (non-business)
taxpayers. The aim was to assist the ATO to better
understand its individual clients by examining taxpayer
characteristics and selected life events that might
impact upon compliance. Such understanding is
directed at identifying taxpayers potentially in need of
ATO assistance. CSIRO statisticians analysed the data
held on the tax system and modelled the likelihood of
timely lodgement and payment, and accurate reporting.
The project also identified potentially useful
relationships between previous and current year
behaviour.
Investigating health care. CSIRO is helping the
Commonwealth Department of Health and Aged Care
to discover useful public health information from their
massive collections of health care data. Using advanced
data mining techniques to analyse Medicare and
Pharmaceutical Benefits Scheme data, the team
discovered which types of patients were most likely
to miss out on the full range of treatments. The
information allows the Department to measure quality
indicators for the Australian health care system, to plan
cost effective public health campaigns, and to provide
information to medical staff. The technique is also
being applied to investigate effectiveness, access and
financing of public health. The technique allows many
hypotheses to be rapidly tested on massive linked data
sets and employs statistical algorithms for identifying
patterns in the provision of care.
Dr Murray Cameron
Mathematical and Information Sciences
Tel (02) 9325 3203
Email [email protected]
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Minerals and Energy Industries >>
Energy Sector
Industry Context
CSIRO’s Strategic Response
This Sector encompasses the production of energy
resources (excluding natural gas and petroleum), energy
generation and supply, energy end use efficiency and
related environmental aspects, particularly the reduction
of greenhouse gas emissions.
CSIRO continues to increase its investment and
commitment to energy R&D through its support for the
new CSIRO Energy Centre to be built at Newcastle and
through an initiative to bring together industry partners
into a Centre for Distributed Energy and Power to be
based at the new Energy Centre.
Australia’s domestic energy industry is changing rapidly
in the face of fundamental and far-reaching market
reform. This is affecting production, distribution and
delivery of both electricity and gas.
The Sector contributes to the:
■
prediction of future energy trends and technology
innovation;
■
enhanced cost competitiveness of coal production;
■
improved environmental, health and safety aspects
of coal production;
■
cleaner, more efficient power generation from fossil
fuels with lower greenhouse emissions;
■
development and use of distributed energy
generation, particularly gas-based technologies;
■
development of high efficiency, cost effective energy
storage;
■
development and utilisation of renewable energy;
coal will remain as Australia’s leading commodity
export with continuing pressure to increase
productivity and lower cost;
■
direct mitigation of greenhouse gas emissions; and
■
enhanced energy end use efficiency.
■
clean coal technologies will remain the major source
of domestic energy, with gas to increase its share;
Research Achievements
■
increased penetration of distributed energy, including
cogeneration, into the market;
■
renewable energy, assisted by government incentives,
will receive considerable investment;
■
energy efficiency and conservation measures will be
adopted across industry; and
■
exports of mining and energy equipment and services
will grow with opportunities, flowing from the Kyoto
protocol, for technologies in the clean coal,
renewable, end use efficiency, and environmental
areas.
The coal industry, Australia’s major exporter and
supplier of some 80 per cent of domestic energy, is
being rationalised with increased productivity essential
in light of price pressures, international competition,
the emergence of a range of new power generation
options and the impact of the Kyoto agreements to
contain carbon dioxide emissions.
The two key drivers for the Sector are downward cost
pressures to keep energy prices at competitive
international levels, and greenhouse gas concerns.
Other factors are:
■
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Greenhouse mitigation. A CSIRO study has shown that
Greenhouse emissions from Australia’s coal mines could
be reduced by five per cent. CSIRO has identified a
method using supplementary fuel to manage
irregularities in mine gas flow, and allow economic
use of the methane to generate power. Agreements
to license the technology have been arranged.
Highwall mining guidance system. Commercial up
take of the Highwall Mining Guidance System has
been extended to mines in the USA, resulting in
foreign exchange for the Australian company that has
commercialised the CSIRO technology. The system
provides navigation and control of coal mining
machines that tunnels into a coal seam from the
surface, where it has been exposed by excavation.
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Impact of power station waste ash. Following a study
on the long-term leaching of trace elements from power
station waste ash, CSIRO is applying the outcomes of
this work to determine economic processes for reducing
the release of environmentally sensitive trace elements
in ash dam waters. The work is being carried out with
funding from the Australian Coal Association Research
Program (ACARP) and the Cooperative Research Centre
for Black Coal Utilisation. Considerable interest has
been expressed by major electricity generators as the
work is seen as an essential aspect of sustainability
of energy production based on fossil fuels.
Energy modelling - comparison of transport fuels.
CSIRO and collaborators have completed two life-cycle
analyses of the greenhouse gases and air pollutants
that are emitted when using alternative diesel fuels
in transport. These studies provided quantitative
information designed to assist regulators determine the
most appropriate fuels for the ‘Diesel and Alternative
Grants Scheme’.
Improving power station efficiency. CSIRO, and the
Cooperative Research Centre for Clean Power from
Lignite, has developed a new model to improve the
efficiency of power stations. A complex model of mill
duct flows has been designed to provide a modification
for Yallourn Power Station in Victoria. The modification
was installed to provide improved control of the fuel
split and hence to improve furnace combustion.
Wind energy prediction. Wind energy yields from
anywhere in the world can now be predicted. CSIRO
has released its innovative WindScape regional wind
energy mapping tool onto the market and is attracting
considerable interest from wind farm developers.
WindScape enables wind energy yields to be predicted
at high resolution anywhere on the earth’s surface.
CSIRO has also undertaken a wind energy resource
survey of some 25 sites in New South Wales on behalf
of the Sustainable Energy Development Authority of
New South Wales.
Fuel cell. CSIRO has opened a Polymer Electrolyte
Membrane Fuel Cell (PEMFC) facility which will be used
to test and evaluate PEMFC stacks from commercial
suppliers and is designed specifically for investigating
fuel quality issues from a range of fuel sources. Fuel
cells are an environmentally friendly technology that
converts fossil fuel or hydrogen with high efficiency,
low pollution and reduced greenhouse gas emissions.
Dr John Wright
Energy Technology
Tel (02) 9490 8610
Email [email protected]
Mineral Exploration and Mining
Sector
Industry Context
The Sector is concerned with the exploration for, and
mining of, economically viable, naturally occurring,
solid, inorganic mineral deposits. Environmental impacts
of mining, minesite rehabilitation and occupational
health and safety considerations are also included.
A number of Australian mining and exploration
companies are prominent at a global level; some
30 per cent of the total exploration budget of
Australian-based companies is expended overseas and
about 20 per cent of the world’s exploration budget
is spent here. Two key industry organisations are the
Australian Mineral Industries Research Association
(AMIRA) (which includes some 80 mining industry
companies) and Austmine Ltd (which comprises some
102 service and manufacturing companies with exports
of mining equipment and services around $1.5 billion
per year).
The minerals industry is in the process of recovering
from a deep cyclical low in mineral prices and has
maintained its focus on cost reduction and diversified
markets. Spending for future growth continues to be
severely curtailed, with particular impact on exploration
and R&D. The associated growth in outsourcing
provides opportunities for CSIRO. Smaller companies
also play an important and increasing service role in
the Australian industry by providing niche products.
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CSIRO’s Strategic Response
CSIRO’s Sector activities have been reshaped around
two concepts:
The Glass Earth — to discover the next generation of
giant ore deposits in Australia by making the top one
kilometre of the Australian continent, and the processes
operating within it, transparent.
Objectives of the research are to:
■
develop geological concepts that deliver validated
area selection criteria to industry;
■
provide innovative technologies to recognise
ore-bearing systems and locate ore deposits; and
■
provide specialised concepts and technologies for
exploration within and through the Australian
regolith.
The Accessible Earth — to optimise the efficiency,
safety and cost effectiveness of mining systems by
making fully accessible new and existing types of
mineral deposits as well as deposits that are currently
sub-economic without short or long-term damage to the
environment or social fabric of the community.
The objectives for this concept are to:
■
improve ore body delineation, rock mass
characterisation and mine design reliability;
■
optimise mine operations and product quality;
■
develop innovation mining and extraction systems;
■
develop technologies that improve mine safety
and health;
■
develop technologies that protect the environment;
and
■
optimise exploration to market systems.
Research Achievements
Active ore-forming environment. CSIRO research into
modern seafloor mineral deposits has led to the first
subsurface sampling of an active, deep-ocean, oreforming environment. The samples were collected from
a submarine volcano, some 400 metres below the floor
of the Bismarck Sea, as part of the international Ocean
Drilling Program. The success of the expedition will add
to the understanding of ancient orebodies found on
land and assist in developing exploration techniques
for future discoveries.
Processing software for the mining industry. Fractal
Graphics Pty Ltd has incorporated an edge detection
technique developed by CSIRO into FracWormer, a
software package for processing gravity and magnetics
data. The resulting three-dimensional images are easily
interpretable by field geologists and geophysicists
involved in mineral exploration and mine planning. The
technique has contributed to a significant gold discovery
at Belle Isle, Western Australia, and is continuing to
provide further drill targets in the area.
TEMPEST maps salinity. The TEMPEST airborne
electromagnetic system developed as a collaborative
venture between CSIRO and World Geoscience
Corporation (now Fugro Airborne Surveys Pty Ltd), under
the auspices of the Cooperative Research Centre for
Australian Mineral Exploration Technologies, has seen
extensive use for the mineral exploration industry in the
past year. The system is also being deployed as part of
the Federal Government’s National Action Plan for Salinity
in the Salt Mapping and Management Support Program.
Several large airborne surveys to map salinity are now
under way in the Murray-Darling Basin.
Pit mapping. With support from the mining industry,
CSIRO has developed a cost-effective system, based on
the use of electronic (digital) cameras, to enable mine
personnel to map the position and structure of a rock
mass quickly and reliably. The three-dimensional images
obtained with the new tool enable more effective
assessment of pit wall stability and optimisation of
blasting, leading to improvements in both productivity
and safety. The system is being introduced into operations
by Newcrest Mining Ltd and at the Ernest Henry mine
and is being trialled at other mines around Australia.
Environmental monitoring at the Ranger minesite.
CSIRO, in collaboration with EWL Sciences Pty Ltd, has
successfully adapted a range of geophysical methods
to detect seepage from tailings dams and other waste
storage structures at the Ranger uranium mine in the
Northern Territory. Mapping with electrical and
electromagnetic methods decreases the need to drill
expensive boreholes to monitor any seepage from the
storage structures.
Dr John Read
Exploration and Mining
Tel (07) 3327 4460
Email [email protected]
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Mineral Processing and Metal
Production Sector
Industry Context
This Sector transforms mined ores to mineral products,
chemically processed minerals, and refined and
unrefined metals.
The Sector has demonstrated a high appetite for
technology, and Australian industry over the years has
been a receptive developer and adaptor of
technologies. However, it currently operates against a
backdrop of increasing globalisation, erosion of inhouse research capability, and the need to process
more complex, often lower-grade ore bodies in the
face of low commodity prices and low profitability.
Pressure for ‘sustainable’ processing will continue to
grow - with implications for greenhouse gas reduction,
recycling and zero waste processes and the social
impacts of mining and processing.
Commodity prices will remain relatively low and this
will continue to place pressure on companies, though
the fall in the Australian dollar has helped over the last
year. The pressure to reduce operating costs and to
maximise return on assets in the short to medium term
is driving both innovation, which tends to be relatively
short term in nature, and amalgamations. The
innovation driver has not as yet translated to increased
R&D expenditure by Australian companies and this
remains at historically low levels.
There are indications, however, that South African and
North American companies are increasing R&D
expenditure and there is a window of opportunity for
Australian minerals technology as a result, particularly
since government and university laboratories in North
America have been significantly down-sized.
The technology needs for this Sector are:
■
process intensification, simplification and
optimisation;
■
increasing the degree of asset utilisation to lower
capital and operating costs;
■
strategies and practices that will lead to sustainable
mineral processing, including increased recovery of
valuable components and reduced waste and
greenhouse emissions;
■
processing lower grade, complex, impure and
difficult-to-treat deposits; and
■
integrated ‘manufacturing-style’ systems to optimise
the flow of materials to market.
CSIRO’s Strategic Response
In response to these identified needs, CSIRO research
is focusing on:
■
strategies and technologies for sustainability, to
assist industry meet economic, environmental and
social expectations;
■
technologies for process improvement;
■
techniques to increase asset utilisation, including
monitoring and control;
■
techniques for difficult-to-treat ores;
■
technologies for mining and mineral processing in
2010;
■
technologies for differentiating Australia’s
commodities to increase export competitiveness;
■
establishment of new light metal industries based
on aluminium, magnesium and titanium; and
■
development of enabling technologies in chemical,
biochemical, physical, mathematical and engineering
disciplines for access by industry.
Research Achievements
Computer simulations reduce risk and improve
performance. Computational Fluid Dynamics (CFD)
modelling is assisting mineral processing companies to
meet the challenge of improving profitability in a highly
competitive environment. CSIRO, in collaboration with
WMC Resources Ltd, has predicted the possible effects
of proposed burner design changes and process
modifications at the Kalgoorlie Nickel Smelter. This has
contributed to improvements in burner efficiency and
increased smelter throughput.
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Magnesium metal - made in Australia. A large multidisciplinary team from CSIRO and the Australian
Magnesium Corporation has been successful in the
development of technology for the Australian
Magnesium Process. The revolutionary process has been
patented and debt/equity arrangements are being
explored to build a $1.3 billion commercial plant. The
proposed plant will produce magnesium products
valued at $300 million to $400 million each year and
employ over 300 staff and will herald the beginning of
a new industry for Australia.
Cobra Probes - making complex gas flow measurement
easy. CSIRO staff recently installed and successfully
commissioned the first of six Cobra Probes at
Pasminco’s Port Pirie Smelter. The probe is performing
extremely well in this rugged environment and is
unique due to its ability to measure accurately gas
direction as well as volumetric flows. The probe enables
Pasminco to detect air leaks quickly and to improve
furnace control - thus increasing energy efficiency and
lowering operating costs.
Assessing process performance on-site. As part of the
commissioning team on the George Fisher Project,
CSIRO staff worked closely with Mount Isa Mines (MIM)
Limited to assess the performance of modifications to
their lead-zinc concentrator. CSIRO provided MIM with
continuous research support and assisted in optimising
the various components of the new flotation circuit.
CSIRO then surveyed the completed modifications and
demonstrated that the concentrator’s performance had
significantly improved.
Ductwork changes slash dust emissions. Joint research
by Queensland Alumina Ltd (QAL) and CSIRO has clearly
demonstrated how environmental emissions can be
slashed with relatively inexpensive changes to the
ducting in electrostatic precipitators (ESPs). CSIRO and
QAL proved the accuracy of their ESP research models
with extensive testing at QAL’s Gladstone plant. The
results offer a 50 per cent reduction in dust emissions which translates to 60 tonnes less dust each year from
each ESP.
Dr Rod Hill
Minerals
Tel (03) 9545 8600
Email [email protected]
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Petroleum Sector
Industry Context
The oil and gas industry delivers to Australia a
competitive and secure supply of oil and gas, together
with a growing revenue from gas exports. Although
Australia’s demand for energy is increasing, the outlook
for oil in Australia suggests a declining self-sufficiency
from approximately 80 per cent now to just below 70
per cent by 2010. The outlook for gas supply is strong,
and forecast to increase, largely at the expense of coal
for electricity generation. This is driving an increased
focus on oil exploration, and the development of a
viable gas to liquids capacity, especially offshore in the
North West Shelf.
The key drivers for the industry are:
■
to improve the Australian exploration performance.
Increased resources and competitive discovery costs
are pre-requisites for the long-term performance of
the petroleum industry;
■
to improve the financial viability of the Australian
petroleum industry through technology
improvements. There is a focus on increased
productivity from investments, especially drilling and
offshore facilities;
■
to maximise value to Australia from its oil and gas
resources. This requires capture of the value of
natural gas resources, and increasing the fraction
of the total oil-in-place that can be economically
produced;
■
to minimise the impact on Australia’s marine
environment; and
■
to accommodate the greenhouse gas mitigation
requirements needed to achieve best practice
international standards and to maintain a viable
industry.
CSIRO’s Strategic Response
R&D aimed at meeting the challenges of the key
industry drivers includes:
■
increasing petroleum reserves and the success rates
of exploration;
■
increasing the quality of appraisal and field
development of reserves;
■
cutting costs and increasing returns from drilling;
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developing better data integration, risk and
uncertainty technologies to improve business
decisions taken in an uncertain environment;
■
extracting increased value from gas production and
processing;
■
enabling economic flow rates from ‘tight’/low
permeability reservoirs;
■
developing options for storage or disposal of carbon
dioxide produced by gas production and processing;
■
enabling sustainable disposal of drilling and
production waste; and
■
predicting extreme ocean conditions as input to the
design of offshore facilities.
Research Achievements
Knowledge management system. CSIRO has finalised a
strategic alliance with Noble Drilling Corporation, one of
the world’s largest offshore drilling contractors, who will
commercialise Genesis 2000 - a knowledge
management technology applied to the drilling of oil
and gas wells. Researchers, in conjunction with six
major international oil companies, consultants and an
international collaboration of scientists, developed
Genesis 2000 as a tool for drilling engineers, rig
personnel, managers and financial controllers to assess
risk, cost wells or modify well plans on the basis of
experience with similar wells or wells previously drilled.
This results in savings in the order of 4-5 per cent in
rig days valued at $300 000 per well. Under the
alliance, CSIRO retains ownership of its intellectual
property in order to develop the technology through its
internal and external scientific network. Noble Drilling
has the exclusive right to commercialise the product.
The benefits to Australia include a stream of royalties
to CSIRO and the creation of two new Perth-based
companies: Spektl, who will maintain the software, and
an agency involved with the commercialisation. The
alliance will reinforce CSIRO and Australia as the South
East Asian hub for developing new knowledge
management tools for the petroleum industry.
Pore pressure risk assessment. A CSIRO risk evaluation
technique to identify overpressures and their impact on
drilling decisions changed Chevron’s perception of the
risk and drilling cost in one of their permits. This
change in perspective led to a reduction in their
expected exploration costs for three prospects of
$30 million, and also provided greater flexibility in their
exploration strategy in that area. The process has since
been applied by Chevron to a deep water prospect in
Brazil with similar success. The technology is now being
incorporated in a decision-support template for use by
industry.
Stratigraphic forward modelling: Sedsim, a sedimentary
process modelling program originally developed by
Stanford University in the US, has been further
developed and enhanced by CSIRO. Sedsim simulates
the filling of a sedimentary basin over time and can be
used to predict the regional distribution of reservoir
sandstones that are important targets in oil exploration.
Sedsim can now simulate the effects of sub-marine
landslides and deep water depositional processes, as
well as the formation of carbonate reefs. In
collaboration with CSIRO, Sedsim has been used by a
range of international oil companies including PDVSA,
Texaco and the Tarim Oil Company to help find oil. In
Australia, the major application is the prediction of
more subtle oil traps (many of the more obvious trap
structures having already been targeted).
Wellbore stability solutions. CSIRO’s wellbore stability
and drilling fluid optimisation technology is used to
evaluate wellbore stability in terms of the principal
mechanical, physico-chemical and thermal mechanisms,
and determine solutions to mitigate problems. The
technology has been adopted in Australian-led ventures
to develop fields in the North West Shelf and the Timor
Sea where savings of up to $10 million per well with
major problems have been realised. The technology has
also helped PETRONAS, the Malaysian National
Petroleum Corporation, to overcome major wellbore
instability-related problems in the South China Sea and
provided them with the understanding and capability
to design drilling fluids for managing shale instability.
Research agreements and collaborative projects are
being discussed with several overseas research centres
that seek to adopt the technology.
Dr Adrian Williams
Petroleum Resources
Tel (03) 9259 6889
Email [email protected]
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Environment and Natural Resources >>
Biodiversity Sector
Industry Context
Research Achievements
Recognition of the importance of biodiversity and
ecosystem sustainability is growing, and this is
reflected in many recent policy initiatives at
international, federal, state and local levels. In the
private sector, industries are seeking new ways of
managing biodiversity and ecosystems in order to
obtain or maintain their ‘license to operate’. Industry
groups are also recognising biodiversity and developing
biodiversity strategies. In the community sector,
biodiversity has become integrated into Landcare
objectives and the Natural Heritage Trust supports
community actions to protect and restore biodiversity.
Farmers act to halt native vegetation decline. An
innovative approach to native plant revegetation in one
of Australia’s top cropping districts is set to reverse the
region’s trend of declining native vegetation. A
database, developed by the Centre for Plant
Biodiversity Research and the Harden Murrumburrah
Landcare Group with funding from the Natural Heritage
Trust, was developed to provide information to the
landholders. This information is currently being used to
plan the revegetation of areas that have less than three
per cent native vegetation remaining.
There is a growing recognition of biodiversity’s value in
sustaining human life by providing:
■
tangible products, like food, medicines and timber;
■
ecosystem services, including purification of water,
pest control, waste disposal and nutrient cycling; and
■
aesthetic surroundings and cultural and spiritual
wellbeing.
There is a considerable range of providers of
biodiversity related research in Australia but few focus
on the large-scale issues that CSIRO’s breadth of skills
allows it to do particularly well.
CSIRO’s Strategic Response
CSIRO Biodiversity Sector has a multidisciplinary
approach to achieving positive biodiversity outcomes
for Australia, with a focus on large-scale integrated
solutions to biodiversity issues at regional or national
scales. Scientists work closely with community, industry
and government groups and organisations.
The most significant areas of research include:
■
knowledge and informatics;
■
regional, national and ecosystem sustainability;
■
conservation and use;
■
pests, weeds and diseases;
■
sustainable tourism; and
■
ecological risk assessment of genetically modified
organisms.
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Bridal creeper - the rust sets in. Researchers from CSIRO
and the Weeds Cooperative Research Centre have
released a rust fungus in New South Wales, South
Australia and Western Australia to bring one of
Australia’s most damaging and persistent environmental
weeds, bridal creeper, under control. The rust disease
has established well and is beginning to spread.
Damage from this fungus and a small leafhopper
released a year earlier is beginning to look spectacular
in some areas.
Sustainable harvesting of firewood. A CSIRO report is
playing an important role in developing a national
policy for sustainable firewood harvesting. The removal
of firewood is having a significant impact on a wide
spectrum of biodiversity and ecosystem processes,
such as nutrient cycling and plant establishment. The
report Impact and Use of Firewood in Australia was
delivered to Environment Australia and the Australian
and New Zealand Environment Conservation Council
(ANZECC) Firewood Taskforce. The report found that
4.5-5.5 million tonnes of firewood has been burned
in Australian households over the past year, much
of it fallen timber from low rainfall woodlands.
Business and biodiversity. The Earthwatch Institute,
in conjunction with BP Australia and New Zealand, Rio
Tinto Australia and the CSIRO, has produced a 33-page
booklet titled Business and Biodiversity. The publication
shows how to examine a company’s environmental
impact, and will raise awareness and involvement of
Australian business in conservation and maintenance
of biodiversity.
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Inventory of ecosystem services. A detailed inventory of
ecosystem services in the Goulburn-Broken Catchment
has been produced to give an insight into what
services are currently provided, and forms the basis for
a more detailed assessment of what might happen to
those services under a set of scenarios for the future.
This inventory will raise awareness of the value of
ecosystem services to a wide range of stakeholders.
There is already strong support for this project from
both the local community and catchment management
authority. These groups will use the report to ensure
that these ecosystem services are taken into
consideration in policy development.
Tourism in Douglas Shire. CSIRO scientists worked
closely with the Douglas Shire tourism industry to
construct an innovative framework for evaluating the
benefits and impacts of nature-based tourism in tropical
north Queensland. The Tourism Futures Simulator is an
interactive computer model that runs on a personal or
laptop computer. Armed with this software package and
its underpinning database, people in the tourism
industry in Douglas Shire are assessing options and
proposals to manage tourism activity, operations and
development.
BioLink. BioLink is a software package used to collect,
maintain, analyse, apply and disseminate taxonomic,
biodiversity and environmental information. BioLink
was commercially released by CSIRO in August 2000
and is currently being used by over 100 researchers
in 15 countries worldwide.
Golden sun moth. The golden sun moth is a day flying
moth that inhabits native temperate grasslands in south
eastern Australia. Once widespread, the species has
become highly fragmented due to loss of habitat, and
is now restricted to relatively few small isolated
patches. Genetic studies have shown that the remaining
populations can be classified into five distinct groups
each warranting separate management for their
conservation. Results from these studies have been
incorporated into recovery actions for the species.
Freeing the world’s waterways. The culmination of three
years’ work in East Africa in collaboration with CABI
(UK) and the Plant Protection Research Institute
(South Africa) has seen the clearing of the world’s
worst aquatic weed, water hyacinth, from Lake Victoria,
restoring biodiversity and the livelihood, transport
systems and culture of villagers bordering the lake in
Uganda, Kenya and Tanzania. This massive infestation,
defeating chemical and mechanical efforts at control,
has been cleared by the activity of two weevils released
in 1997.
Dr Brian Walker
Sustainable Ecosystems
Tel (02) 6242 1740
Email [email protected]
Climate and Atmosphere Sector
Industry Context
The Sector covers the economic, social and
environmental impact of weather and climate, as well
as the effect of economic and social activities on
climate and the atmospheric environment. Key issues
are human environmental impacts such as urban and
regional air pollution, stratospheric ozone depletion and
greenhouse-induced climate change. Also covered are
natural phenomena such as climatic variability (drought
and floods), severe storms, tropical cyclones and the
impact of, and responses to, climate variability and
climate change.
The UN Framework Convention on Climate Change and
the National Greenhouse Strategy are major drivers for
this Sector. CSIRO works very closely with the Australian
Greenhouse Office and with a growing range of State
and private sector organisations in need of climate and
greenhouse-related advice and solutions to problems.
The Montreal Protocol on Ozone Depleting Substances,
the National Environment Protection Measure (NEPM)
for Air, drought exceptional circumstances policy, and
the need for solutions for sustainable management of
Australia’s environmental resources also underpin the
activities of the Sector.
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CSIRO is the largest provider of climate and
atmosphere-related research in Australia (and the
Southern Hemisphere). It works closely with, and
complements the research activities of, the Bureau of
Meteorology, universities and State Departments and
Agencies.
CSIRO’s Strategic Response
CSIRO works closely with policymakers, contributing
significantly to domestic and global policy development.
The Sector’s strategy has the following key elements:
■
capitalise on the past decade of investment in
climate process and modelling research;
■
further improve longer-term seasonal forecasting
abilities;
■
underpin Australia’s position with respect to climate
change and ozone depletion, in particular providing
better estimates of emissions of greenhouse gases
and ozone depleting chemicals, and examining
strategies for managing carbon emissions;
■
provide air quality forecasting technology and seek
to strengthen knowledge of the relationship between
air quality and human health;
■
support scientifically the Australian Government in its
negotiation of climate agreements; and
■
maximise the effectiveness of national expenditure
on climate research by collaboration and
communication with key stakeholders.
Research Achievements
International climate change science reviews and
briefings. CSIRO scientists have made major
contributions to a range of international science
reviews, particularly those commissioned by the
Intergovernmental Panel on Climate Change (IPCC). In
2001, the IPCC released its latest assessments of the
likely extent of climate change. CSIRO’s very significant
participation in this process demonstrates the
international standing of relevant Australian research.
More importantly this active participation has lead to
our scientists having an intimate knowledge of the
current status of this rapidly developing and highly
relevant field of science, and leading to CSIRO staff
being regularly asked to present greenhouse science
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briefings to policy makers. For example, one staff
member alone has made 30 such briefings to Ministers,
governments, industry boards and industry bodies in
the last eight months.
Seasonal climate forecasting. A CSIRO seasonal
climate prediction model is now routinely producing
experimental 12-month forecasts of sea surface
temperatures. The predictions are publicly available at
http://www.dar.csiro.au/res/cm/coca.htm and are also
used by the National Climate Centre in assessing the
development of El Niño and La Niña events. Predictions
issued last year correctly identified the persistence of
La Niña conditions and correctly implied the wet spring
experienced by eastern Australia.
Forecasting for agriculture. CSIRO and five agribusiness
companies have tested seasonal climate forecasts and
cropping systems simulations using a statistical forecast
system based on sea-surface temperature patterns. The
system predicts plant growth in cropping and grazing
regions. This may have applications in marketing,
financial lending, insurance and portfolio management.
Climate projections for Australia. CSIRO’s latest
comprehensive study of climate change and impacts for
Australia will assist the community to plan adaptation
strategies for future climate changes. Two outputs are
an eight-page brochure on future changes in Australian
temperature, rainfall and evaporation, and a second
brochure on possible impacts due to climate change
on aspects of national life such as agriculture, coastal
towns, forestry and human health.
Australian air quality forecasting system. A new air
quality forecasting system developed with the Bureau
of Meteorology Research Centre and the Environmental
Protection Authorities of Victoria and New South Wales
became operational during the Sydney Olympics in
2000. In addition, a new power-based inventory for
motor vehicle emissions for the Sydney major road
network was completed. The inventory will allow better
assessment of the contribution of motor vehicle
emissions to pollutant concentrations near roads.
Atmospheric sampling equipment. Environmental
equipment firm, Ecotech Pty Ltd, has exported
sophisticated rainwater samplers and atmospheric
particle samplers developed by CSIRO to environmental
protection agencies, consultants and industry in
17 countries. CSIRO designed both samplers, and
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CSIRO’s Strategic Response
Ecotech sells them under licence to CSIRO, with
royalties flowing back to research. The rainwater
sampler accurately records rainfall and collects and
stores rainwater for subsequent chemical analyses.
The device is designed to run unattended in remote
locations.
Detection of hazardous volcanic ash clouds by aircraft.
CSIRO is collaborating with an Australian company,
Integrated Avionic Systems, to commercialise a worldfirst detector designed to warn pilots of volcanic ash
clouds in their flight paths. In the past 30 years, more
than 90 jet aircraft have encountered ash clouds
emitted from erupting volcanoes. Silicon compounds
within these clouds can cause costly damage to aircraft,
ranging from abrasion of windows and composite
surfaces to engine destruction. Engine failure associated
with ash cloud encounters represents a major safety
hazard. The detector will give pilots five to ten minutes
to take evasive action if an ash cloud appears in their
flight path.
Dr Graeme Pearman
Atmospheric Research
Tel (03) 9239 4650
Email [email protected]
Land and Water Sector
Industry Context
The Land and Water Sector is focussed on the
ecological, economic and social issues that impact on
both sustainable regional development and the
provision of healthy urban environments. The key focus
is on delivery of solutions to major national natural
resource management problems.
The Sector’s core agenda is to develop an in-depth
understanding of natural and managed ecosystems
across a range of scales and to investigate solutions
that minimise the impact of human activity on the
function and health of terrestrial and aquatic
environments. The Sector has developed strategic links
to environmental policy units, local, state and
commonwealth government agencies, agribusiness,
water supply, mining, petrochemical and manufacturing
industries, and community-based land management
groups.
The Sector’s strategic research is conducted at both
a broad ‘landscape’ scale, directed to system-wide
issues, and at a local scale where chronic
contamination issues threaten land and water
resources. Research is focused on:
■
landscape scale systems understanding and the
development of systems models to predict the
impact of management practices on ecosystem
function, productivity and restoration of landscapes;
■
water quality and quantity, the impact of climate
variability on water management, and the impact
of Council of Australian Governments (COAG) water
reforms on water allocation and environmental flows;
■
increased water use efficiency in irrigated agriculture;
■
solutions to dryland and in-stream salinity
management and rehabilitation of saline areas;
■
land management impacts on river and storage water
quality and coastal/estuarine environments;
■
land atmosphere interactions, carbon cycling;
■
contaminant behaviour in groundwater, aquatic and
terrestrial environments: risk assessment, ecotoxicity,
remediation/rehabilitation;
■
socio-economic impacts of environmental
management practices; and
■
design of agricultural production/management
systems that are better attuned to the Australian
environment.
Research Achievements
Salinity management. CSIRO is involved in a number
of collaborative activities with the Bureau of Rural
Sciences (BRS), state agencies and consultants to
develop groundwater flow systems for salinity
management. An important component of this work
is the documentation and analysis of case studies in
which there has been intensive study. A number of case
studies have been completed under the National Land
and Water Resources Audit and others are in progress
in a Murray-Darling Basin Commission (MDBC) funded
project. Salinity potential maps have been completed,
most recently for the Murray-Darling Basin. The
development of models provides a stronger link
between groundwater attributes and the likely success
of different management options.
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Rural and regional sustainability. CSIRO has worked
with three rural regional communities in central
Queensland, western New South Wales and the West
Australian goldfields to develop new ways to plan for,
and manage, natural resources to be environmentally,
socially, and economically sustainable. Together with
CSIRO researchers, key stakeholders from each
community identified the issues critical for their region
and then worked towards improving the community’s
capacity to manage them. This project resulted in the
development of key principles needed for the
development of rural planning systems, delivery of
information needed for resource management, decision
support tools to assist planning, and community
structures to enable them to ameliorate resource
conflict. Knowledge gained from these regional case
studies is influencing policy and practice at local and
State Government levels in participatory resource use
planning.
Improving the efficiency of irrigated agriculture. CSIRO
research has contributed substantially to irrigation
water management and irrigated area management.
Australian irrigated agricultural production is worth
$6 billion at the farm gate, with processing and
manufacturing amounting to $24 billion. Coleambally
Irrigation Cooperative Ltd is implementing a
management strategy based on CSIRO research,
including the application of the Salt Water and
Groundwater MANagement (SWAGMAN) Farm model.
They are also using guidelines developed by CSIRO to
determine the eligibility and conditions under which
land and water management incentives would be
provided to ensure the effective management of
subsurface drainage in the Coleambally region.
Soil and groundwater remediation technologies.
Cost savings of up to $15 million a year have been
projected for a petrochemical company due to CSIRO
research that focused on the evaluation of soil and
groundwater remediation technologies. Research has
pointed to improved efficiencies and better remedial
design, and increased the potential to produce cleaner
environments. Research results on the potential impact
and fate of hazardous chemicals as they move in
groundwater toward riverine and marine ecosystems
are also being taken up by industry and regulatory
agencies.
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Water and sediment quality. CSIRO has played a leading
role in the development of new Australian and New
Zealand Environment and Conservation Council
(ANZECC) /Agriculture and Resource Management
Council of Australia and New Zealand (ARMCANZ)
guidelines for fresh and marine water quality. These
incorporate many of CSIRO’s recent research advances
in the assessment of varying conditions under which
contaminants become available to marine plants and
animals. The risk-based approach of the new guidelines
is different to the conventional international guidelines.
Limitations to and further advances in the application
of the new guidelines are being addressed in current
externally-funded research by CSIRO. This includes the
development of robust methods for the measurement of
metal speciation (funded by the Cooperative Research
Centre for Waste Management and Pollution Control),
the evaluation of pathways for sediment metal
bioaccumulation and toxicity (funded by a New South
Wales Environmental Trust Grant), and an evaluation of
a defensible guideline for tributyltin in sediments
(funded by harbour and port authorities and regulatory
agencies and coordinated by the Cooperative Research
Centre for Coastal Zone and Waterway Management).
CSIRO is being funded by the minerals industry to
prepare a handbook for the application of the new
guidelines to mining activities.
National water reform. Over the last two years, CSIRO
has conducted considerable research on the
effectiveness of interstate water trading for the Murray
Darling Basin Commission and on the development of
alternative groundwater trading regimes. In areas where
groundwater is over-allocated, CSIRO scientists are
helping to define fairer ways to revise water resource
allocations. This work is being underpinned by
important work on the quantity of water that can be
extracted from fractured rock aquifers for irrigation.
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CSIRO’s Strategic Response
Physical economy modelling. CSIRO has successfully
demonstrated the feasibility of developing wholeeconomy analytical capability and options analysis for
the complete set of physical economy transactions that
underpin the nation’s financial flows. This has not yet
been implemented in any OECD country, placing
Australia at the forefront of physical economy modelling
and analysis at the national scale. A recent project
funded in association with Department of Immigration
and Multicultural Affairs has highlighted the effects of a
number of future population scenarios on Australia’s
environment and physical resources.
The challenges we face as custodians of the world’s
largest and most diverse Exclusive Economic Zone are
daunting in scope; collaboration and co-investment are
key elements of our strategic response.
CSIRO has identified the following as priority areas:
■
exploring the Exclusive Economic Zone and
supporting multiple-use marine management,
specifically around south eastern Australia as part of
Oceans Policy implementation, on the North West
Shelf in collaboration with the Western Australian
Government; and in north eastern Australia in
collaboration with the Great Barrier Reef Marine Park
Authority, Australian Fisheries Management Authority
and the Queensland Government;
■
ecosystem approaches to fisheries management to
assist Government and industry to achieve national
policy goals and meet international obligations for
sustainable fisheries;
■
integrated catchment-to-coastal zone research with
the Coastal Cooperative Research Centre and through
other large collaborative studies such as the OrdBonaparte program; and
■
climate impacts in the marine environment,
responding to a growing demand for detailed
regional application of the climate predictive
capability developed by CSIRO and the Bureau of
Meteorology over the last few years.
Dr Graham Harris
Land and Water
Tel (02) 6246 5621
Email [email protected]
Marine Sector
Industry Context
Research in the Marine Sector is relevant to economic
and environmental activity in Australia’s marine territory,
one of the world’s largest marine jurisdictions.
Australia’s territory is now 68 per cent ocean. We have
an obligation to understand, preserve and utilise the
vast potential wealth of our ocean territory in a
responsible and sustainable manner.
Our oceans are a public domain, with many activities
competing for access. Pressures on the ocean from land
and offshore activities are considerable, and increasing.
Economic, environmental and public good
considerations can only be balanced through a
combination of fundamental research into ocean
processes and ecosystems, and development of robust
techniques for assessing and mitigating the risks to
ecological integrity that stem from human use.
Australia’s Ocean Policy (issued in December 1998)
is premised on an ecosystem approach to planning
for multiple uses of the marine environment. The
associated Marine Science and Technology Plan (issued
in June 1999) identifies national research priorities and
forms the basis of an integrated national marine
research strategy. Both are strong drivers of work in
the CSIRO Marine Sector.
Research Achievements
Resource assessment of South Eastern Australia. The
first ever resource survey of the south east marine
region was completed (with the Australian Geological
Survey Organisation) for the National Oceans Office
(NOO). CSIRO developed and tested a new method for
assessing and predicting marine resources. It proved
highly successful and enables a national seafloormapping program to be considered. The south east
survey information will be used by NOO as the baseline
data for Australia’s first regional marine plan and will
assist to meet a key objective of Australia’s Oceans
Policy.
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Conserving unique deep sea marine environments.
Environment Australia (EA) have used CSIRO’s report on
the conservation of deepwater fauna of Macquarie
Island to prepare a management plan for the Macquarie
Island Marine Park. CSIRO also provided valuable advice
to protect unique environments in the south west
Pacific and Indian Oceans.
Controlling marine pests. CSIRO has developed a
software tool with funding from the Australian
Quarantine and Inspection Service (AQIS) that can
determine the best way to manage ships’ ballast water,
one of the main carriers of exotic pests into our ports.
AQIS have adapted the system to their policy
requirements and will introduce it for use by quarantine
officers from July 2001. CSIRO has also developed a
range of response options to deal with marine pests
that enter Australian waters in other ways. Environment
Australia will provide our product online to State and
Commonwealth managers enabling them to take fast
action to halt and eradicate new outbreaks.
Improving estuary health. A software tool that assesses
the health of estuaries and predicts how it would
change with different types of human pressure has
been developed for the National Land and Water
Resources Audit with funding from the Natural Heritage
Trust. The software will be available online to the
community and environmental and resource managers
to assist in making decisions about estuarine
management. A more complex tool was developed for
an industry client to assess the environment risks from
effluent discharged from its newsprint mill into the
Derwent Estuary. It will enable the company to meet the
requirements of the State Government and guide
environmental management of the estuary.
Managing expansion of the aquaculture industry.
A major environmental study of the Huon Estuary in
Tasmania, supported by the Fisheries Research and
Development Corporation and the aquaculture industry,
has led to a better understanding of the estuary and
the pressures of aquaculture development. The results
have been used by State agencies to set targets for
aquaculture expansion, which are crucial to avoid the
severe problems of environmental degradation and
disease experienced overseas and enable the long-term
sustainability of the industry.
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Ecosystem approaches to fisheries management.
Ensuring the sustainability of bycatch species is an
issue that most fisheries in the world must address. It
is a significant challenge in many fisheries because of
the diversity of bycatch species and a lack of historical
and biological information. A methodology developed
previously by CSIRO has been applied to the Northern
Prawn Fishery (NPF) to identify the impact of their
trawling practices on bycatch species. This is assisting
the NPF to meet national legislative requirements and
international obligations for sustainability of bycatch.
The approach is now being applied to other fisheries,
including the Torres Strait Prawn Trawl Fishery, East
Coast Trawl Fishery and East Coast Tuna Billfish Fishery.
Ensuring the long-term sustainability of our fisheries.
CSIRO’s stock assessment of tiger prawn species in the
Northern Prawn Fishery played an important role in the
restructure of the Fishery, following the sharp decline in
catches in the 1980’s, and has resulted in the adoption
of new management strategies that have stopped the
decline in the catch. CSIRO’s monitoring and
assessment of the Southern Bluefin Tuna (SBT) Fishery
was used by the Commission for the Conservation of
SBT to set international fishing quotas and develop
management strategies to recover the population,
which is at a historically low level.
Enhancing the health value of food. Screening of the
CSIRO collection of living microalgae, a unique
assemblage of hundreds of specimens of microalgea
found in marine environments from the tropics to the
poles, has provided several novel polyunsaturated fatty
acids that have proven health benefits for humans.
The technology has been patented and commercial
collaborations are being negotiated. CSIRO has also
demonstrated that Omega-3 oils from tuna can be
incorporated into milk, to provide the consumer with
a healthier option that has benefits for preventing heart
disease and aiding brain development. Discussions with
commercial partners are underway.
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How climate affects productivity in our fisheries. CSIRO
has demonstrated how Australia’s most valuable fishery
- Western Rock Lobster - is affected by the El Ni~
no
phenomenon. The results were part of the
documentation that made this the first significant
fishery in the world to achieve international certification
from the Marine Stewardship Council as a sustainable
well managed resource. This enhances the fisheries
ability to access export markets, particularly in Europe,
where wholesale companies prefer to purchase seafood
from producers who have had their operations certified
as environmentally sustainable. It can also increase the
price wholesalers are willing to pay for the product. The
advanced method of ocean analysis developed by
CSIRO and the Bureau of Meteorology Research Centre
can also be used to provide information for Australia’s
maritime defence operations and discussions on a
multi-million dollar project with the Royal Australian
Navy are underway.
Dr Nan Bray
Marine Research
Tel (03) 6232 5212
Email [email protected]
Agribusiness Industries >>
Field Crops Sector
Industry Context
CSIRO’s Strategic Response
The prospects for growth in the Sector industries, both
in commodity quantity and in product quality
differentiation, are high. Increasing demand for food
and food products on a global scale, and in particular
in markets targeted by Australian agricultural and food
industries, is assured.
Profitable and ecologically sustainable cropping systems
research will have high priority in the Sector and is a
major area of cross-Sectoral importance. Decision
support tools, cropping systems models and action
learning approaches are prominent in CSIRO’s research.
Also of high priority is pest research, from mice in
crops to insects in stored grain.
However, a major problem facing the cropping
industries is the existing and further potential loss of
prime production land through increasing acidification
and salinity. Research has paved the way for major
improvements in management practices in all of the
cropping industries to help solve this situation.
Industry has recognised that CSIRO’s research is playing
an increasingly important role in the Sector as in recent
years the State Departments of Agriculture have
progressively down-sized their research capacities and
emphasised their roles in regulatory affairs. The CSIRO
response has been to increase collaborative research
programs with the State Departments, particularly in onfarm operations, and to increase collaborations with a
growing number of elite farmer groups and agribusiness
enterprises, ensuring rapid adoption of research into
practice.
Gene technologies will be of major importance for
cropping industries of the future, but a key strategy in
our research is to develop technologies that will bridge
the transition between current conventional breeding
and transgenic breeding of the future.
Gene technologies have opened the way for new
approaches into the control of fungal pathogens that
are currently limiting the growth of the grain legume
industries. Improved nutritional profiles, such as
protein, starch, phytochemical and fatty acid
composition of grains for the food chain can now be
specific objectives in plant improvement programs.
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There are new opportunities for the sugar and cotton
cropping industries in 300 000 irrigated hectares of
Western Australia, Northern Territory and Queensland.
These expansions are strongly dependent on CSIRO’s
high technology management and breeding research,
and on its capacity to design farming systems that
meet government and consumer expectations about
sustainability.
Research Achievements
Flowering Switch Gene. Twenty years of research has
led to the discovery of the Flowering Switch Gene,
a key gene in determining when plants end their
vegetative growth phase and start flowering. This
discovery has implications for crops and for industries
such as the horticulture and flower industries, because
it has the potential to allow extensive control over the
flowering schedules of particular plants and crops. The
research received the inaugural Prime Minister’s Prize
for Science in 2000.
Mouse plague research. CSIRO’s ‘mouse model’
successfully predicted high mouse numbers in the
Victorian mallee by April 2001. The software was trialled
in November 2000, using data from north-west Victoria.
This is the first formal model to forecast mouse plagues
in south east Australia. Linked to this work was the
release in mid 2001 of MOUSER 1 - a CD-ROM to aid
decision support for mouse plague management.
Operations research for the sugar industry. The altered
cane harvest schedules arising from CSIRO’s work are
expected to improve production and profitability in the
sugar industry significantly. Decision support software
to implement alternative cane supply arrangements has
been developed by CSIRO and the Cooperative
Research Centre for Sustainable Sugar Production. This
software is underpinned by statistical and optimisation
modelling of productivity data from the Australian Sugar
Industry.
Nitrate contamination of groundwater. A CSIRO study
of the extent of nitrate contamination of groundwaters
in the cane growing regions of eastern Australia, has
provided the Australian Sugar Industry and its regions
with useful information. While the vast majority of
groundwaters meet drinking water standards, about
3 per cent of bores contain excess nitrate levels that
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can largely be traced to inorganic fertiliser sources.
Improvement in nitrogen fertiliser management practice
has been identified as the key to avoiding groundwater
nitrate contamination.
Canadian leafcutter bees introduced. To boost lucerne
seed production through better pollination, CSIRO has
been involved in the safe introduction of Canadian
leafcutter bees into Australia. These bees are smaller
than honey bees and more effective at pollinating
lucerne flowers, thereby increasing seed production.
Following research aimed at developing effective
importation procedures that met Australia’s strict
quarantine requirements, and sourcing a disease-free
population of bees in Canada, releases have been
made, and managed populations of the leafcutter bees
are now established in Australia.
Lucerne a perennial performer. Research at CSIRO
shows there is an advantage in incorporating deeprooted perennial pastures like lucerne to prevent
waterlogging, reduce dryland salinity, combat herbicideresistant weeds, and increase soil organic matter.
Waterlogging is a major cause of productivity loss for
grain growers in parts of New South Wales, Victoria and
Western Australia. Perennial pasture plants like lucerne
are effective at removing water from the soil because of
their deep rooting nature and perennial growth habit.
This characteristic enables lucerne to continue to use
water when annual crops and pastures have finished
their growth cycle. Lucerne increases the feed available
for grazing stock, and improves nitrogen availability to
the following crops. The higher water use in lucernebased rotations also lowers the risk of dryland salinity.
Barley Yellow Dwarf Resistant wheat. CSIRO scientists
have bred two wheat varieties resistant to Barley Yellow
Dwarf Virus (BYDV). The varieties are the first to be
bred that are resistant to BYDV; it is the most
important cereal virus in Australia and internationally,
significantly reducing yields of susceptible varieties.
Seeds of the new varieties are currently being produced
in commercial quantities. The first variety, a premium
milling wheat, is expected to be available to growers
in 2001. The second, a forage and feedstock wheat,
will be available to growers in 2002.
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Food Processing Sector
Industry Context
Barleyplus™. CSIRO scientists have identified a new
line of barley that has a combination of constituents
that offer significant health benefits. CSIRO has filed
patent applications on Barleyplus™, and negotiations
have been initiated to develop a business system for
global commercialisation. Barleyplus™ is the result of a
joint effort between the CSIRO’s Field Crops and Food
Processing Sectors.
Economic analysis demonstrates the benefits of stored
grain research. An external cost benefit analysis of the
Stored Grain Research Laboratory, commissioned by
industry, has shown enormous benefits from the work
of the Laboratory, ranging from a most pessimistic
scenario benefit/cost ratio of 8:1 up to 20:1.
Managing root disease in broad acre crops. CSIRO and
the Grains Research and Development Corporation have
developed DNA-based markers to detect and quantify
levels of the root pathogenic fungi, take-all disease and
Pythium root rot in agricultural soils. This research has
the potential to refine disease prediction and risk
assessment models by quantifying these pathological
variants in agricultural soils and therefore identifying
the crop species most likely to be at risk. Growers will
continue to benefit by making informed decisions on
the selection and timing of specific crop rotation
strategies to suppress fungal root disease, and thereby
increase the profitability and sustainability of cropping
systems.
Dr Jim Peacock
Plant Industry
Tel (02) 6246 5250
Email [email protected]
The processed food industry is the largest
manufacturing sector in Australia, with annual turnover
of approximately $44 billion. It comprises over
3 500 firms of varying size and employs one in five
of the manufacturing work force. It sources more than
90 per cent of its ingredients from the Australian
agricultural sector and serves export and national
markets, with export growth of approximately
11 per cent per annum for the last eight years.
The ‘participation rate’ by food companies in R&D has
been low historically, but this is changing significantly
in response to a market place in which innovation plays
a key role. CSIRO continues to play lead roles for public
and private R&D for the sector.
The primary R&D drivers for the sector in the medium
term are:
■
globalisation of markets and R&D - driving
competitiveness in domestic and export markets;
■
consumerism - increasing demands for sustainably
produced, safe, wholesome, convenient and
affordable quality food products with health benefit
attributes;
■
technology domination/transfer - advances in other
disciplines (eg information technology, nutrition and
health sciences) incorporated in food products and
processes;
■
changing demographics - changing food requirements
of an ageing population; and
■
international and domestic regulation and policy affecting food composition, production and
manufacturing systems, and food labelling, for
example health claims.
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CSIRO’s Strategic Response
CSIRO has developed five primary research components
that address the key drivers for the industry listed
above.
Activities include:
■
innovations to food product ingredients through
developing new materials and improving their
quality and functionality;
■
developing efficient product manufacture and delivery
systems;
■
methods and strategies to improve the safety of food
along the complete food supply chain;
■
identifying foods with specific health attributes and
developing public information programs; and
■
understanding consumer demands and preferences
for food products.
Research Achievements
Innovative Foods Centre For Emerging Technologies.
Food Science Australia, a joint venture of CSIRO and the
Australian Food Industry Science Centre (Afisc) has
established an ‘Innovative Foods Centre’ to develop
alternatives to thermal processing of foods and
beverages. In conjunction with a commercial partner,
Flow International, Food Science Australia is developing
improved techniques for Ultra High Pressure (UHP)
processing, including the commercial processing of
oysters. The Centre will provide easier access to
emerging technologies for Australian food companies.
Microencapsulation technology. Food Science Australia
has patented a coating technology to extend the shelf
life and stability of food ingredients and products.
Clover Corporation and Food Science Australia have
reached agreement on licensing and further
development of the technologies in the manufacture of
encapsulated tuna oil and other functional food
ingredients.
Transportation of perishable foods. Scientists at Food
Science Australia are developing improved methods of
monitoring fresh produce transported in shipping
containers. Using information providing accurate
temperature logging in various parts of the container,
the team is able to advise on the strategic management
of a range of fruit and vegetables for maximum quality
and increased export profits.
Meat processing equipment. The Wulguru Group, a
Queensland based construction and equipment
manufacturing company, has established an export
market in Japan for a number of meat processing
technologies. Wulguru and Food Science Australia have
worked together to develop this market.
Foreign bodies in foods. The detection and elimination
of foreign bodies in foods is a major problem in the
food industry. CSIRO and Food Science Australia are
continuing the development of a novel detection
system, which will detect stainless steel and other
foreign bodies in foods and raw materials. There is
international interest in the application of the
technology.
Whey protein isolate. CSIRO and Food Science Australia,
in partnership with a large Australian dairy cooperative,
have developed a novel whey protein isolate from
cheese whey. The technology has been incorporated
into a commercial processing facility with all the
product being exported to global markets.
John Buhot
Food Science Australia
Tel (07) 3214 2028
Email [email protected]
Specialty dairy powders. Food Science Australia has
developed technology for the production of specialty
dairy powders and has now licensed the technology to
a number of dairy companies. Some of these powders
have been exported to the Asian region to meet the
growing demand.
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Forestr y, Wood and Paper
Industries Sector
Industry Context
CSIRO’s Strategic Response
The Forestry, Wood and Paper Industries Sector includes
all stages of the value chain from sustainable
management of native forests and plantations, to tree
harvesting and log transportation, wood processing into
solid timber and composite materials, furniture,
papermaking and recycled fibre processing and
products. It also embraces the environmental impact of
forestry and processing operations.
The Sector’s research aims to contribute to Australia’s
ecologically sustainable development providing direct
and indirect economic and community benefits through
the conservation of biodiversity, remediation of
degraded land, waste management, carbon
sequestration, and improvement of water quality. CSIRO
has adopted the following strategic research objectives:
Some of the key factors influencing the Sector include:
■
■
■
■
extensive restructuring within the industry, reflecting
globalisation, company amalgamations, private
ownership of forest resources, foreign investment,
and the rise of plantation investment companies;
declining access to native forests, expansion of
plantations for wood supply, and the role of forests
in carbon sequestration and potential greenhouse
gas emission trading;
recognition of the capacity of new forests to supply
environmental services such as amelioration of
degraded land, management of catchment water
balances, and sequestration of carbon; and
competition from wood substitutes and the need
to improve performance and quality of wood-based
products and materials, especially in commodity
markets.
Key trends in science and technology include:
■
incorporation of molecular biology into conventional
tree breeding strategies to improve wood and fibre
properties and environmental adaptability;
■
advanced material science for development of new
wood-non-wood composites;
■
use of technologies to link wood properties to
product properties and performance; and
■
advances in downstream technologies (eg in printing
and communications) on requirements for surface
properties and structure of paper and paperboard.
■
management systems for sustainable native forests;
■
sustainable management and enhanced productivity
of plantations;
■
value enhancement in the forest;
■
risk management - pathogens, pests, fire and
drought;
■
forest operations - their economic and environmental
performance;
■
value-added wood products; and
■
papermaking and paper quality.
Research Achievements
A profitable landcare system. A demonstration plant to
be built by Western Power, at Narrogin, south of Perth,
that will produce energy and high-value activated
carbon from wood was launched in November 2000.
The plant will produce activated carbon and energy
using a new CSIRO process. The full-scale
demonstration plant, handling some 20 000 tonnes
of mallee trees annually, will be completed in 2001.
Designed to produce 700 tonnes of activated carbon
and 200 tonnes of eucalyptus oil annually, the plant
will have an electrical generation capacity of about one
megawatt. The process has received a number of
industry awards.
Benefits from plantation fertiliser. New findings from
CSIRO are helping managers of radiata pine plantations
make decisions on mid-rotation fertiliser application.
Applying nitrogen or phosphorus fertiliser, or both, five
to eight years before harvest can significantly boost the
economic return from a plantation. While the growth
response of plantations varies greatly, a new test
developed by CSIRO is being used by industrial
collaborators to predict where best results can be
obtained.
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Tree belts show their worth. Planting trees on farms can
help control waterlogging and dryland salinity. Research
by Agriculture Western Australia, the University of
Western Australia and CSIRO has shown that water use
by tree belts substantially outstrips inputs from rainfall.
The study aimed at developing effective strategies for
the management of waterlogging and salinity in the
Western Australian wheat belt. The results will further
assist the development of sustainable farming systems
that more closely mimic native ecosystems in areas
affected by rising watertables and salinity.
Demonstrating sustainability of pine plantations. Research
by CSIRO and the Queensland Forest Research Institute
has found soil fertility under mature pine plantations is at
least as high as in neighbouring areas of native forest.
The soils under pines store as much carbon as pasture
soils. This suggests fears that replacing pasture with
plantations will release large quantities of soil carbon,
with adverse ‘greenhouse’ effects, are unfounded. The
findings will assist in measuring, more accurately,
changes in greenhouse gases.
Indicating forest health from airborne imagery.
In collaboration with State Forests of New South Wales,
CSIRO has developed a prototype indicator of forest
health and vitality. The indicator is being applied to
coastal mixed eucalypt forest and mountain ash forests
affected by insects, and radiata pine plantations
affected by needle blight. The indicator will also assist
international reporting commitments.
Measuring changes in greenhouse gases and soil
carbon. CSIRO has organised and facilitated two expert
workshops on behalf of the Australian Greenhouse
Office (AGO). The workshops brought together national
experts to assist the AGO refine its methods for
measuring changes in greenhouse gases absorbed or
released during changes to vegetation (mainly land
clearing, forest management and re-vegetation).
The threat of Asian Gypsy Moth. The susceptibility of
85 species of native trees and shrubs of New Zealand,
South America and Australia to Asian Gypsy Moth was
examined by assessing the insect’s host range and
potential distribution. The study was conducted jointly
in Australia, New Zealand and France on behalf of the
Australian and New Zealand Governments. Given the
suitability of some Australian plants and climate for the
establishment of the moth, this insect should be treated
as a serious quarantine threat and managed accordingly.
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Strategic tree planting to sustain rice growing areas.
Recent studies by CSIRO indicate that planting trees
over ancient river beds could combat rising
groundwater and salinity in the rice fields of the Murray
Irrigation Area (MIA) near Deniliquin, New South Wales.
Rising water tables, which bring stored salt to the soil
surface, threaten the long-term viability of irrigated
farming. Strategic tree plantings in these areas will use
groundwater and could help sustain conventional
agricultural production. Currently about 10 per cent of
the region’s land area of 55 000 hectares is under rice
while 40 per cent is used for pastures or other crops.
The study indicates that about 11 000 hectares of
carefully placed plantations are needed to stop rice
cultivation raising water tables further.
Eucalypt posts for vineyard trellises. Posts made from
plantation eucalypts irrigated with wastewater have
proved successful in trials at Lindemans Wines near
Mildura. The posts are extremely strong and so are
less vulnerable to damage from weather or impact from
farm machinery. The posts were treated with pigment
emulsified creosote, a process developed by CSIRO
and Koppers, with support from the Forest and Wood
Products Research and Development Corporation
(FWPRDC).
Testing thinning options for eucalypt plantations.
Results from Eucalyptus nitens plantation trials in
Tasmania indicate that the optimum stocking density
after thinning for sawlog production is around 200 to
300 stems per hectare. The research, by CSIRO and the
Cooperative Research Centre for Sustainable Production
Forestry, found tree growth rates are near the maximum
attainable at these densities. The rapid expansion of
eucalypt planting in recent years, for sawlogs as well
as pulpwood, has focused attention on the need to
develop cost-effective thinning regimes. Cooperative
Research Centre partners are now using this knowledge
to modify thinning practices.
Dr Glen Kile
Forestry and Forest Products
Tel (02) 6281 8314
Email [email protected]
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Horticulture Sector
Industry Context
Research Outcomes
Australia’s location, land and water resources and
diverse range of climates make it possible to grow an
extensive range of temperate, sub-tropical and tropical
produce. Off-season produce from Australia is
increasingly meeting market opportunities in the
Northern Hemisphere.
Gene banks for Macadamia diversity. In March 2001 the
first of three Macadamia germplasm collections was
launched at Caboolture Shire in Queensland. The
purpose of the plantation sites is to protect and
preserve the diversity of wild macadamia varieties
under threat from clearing of lowland rainforests and
urban development. The three sites have been planted
out with cuttings taken from wild Macadamia trees from
across their native range along the northern east coast
of Australia. They will provide a significant resource for
the industry, as well as preserving the natural diversity
of this rainforest species.
The following factors differentiate the horticulture sector
from other agricultural production:
■
most horticultural crops are highly perishable and are
purchased (and often consumed) fresh. Quality of the
produce is therefore highly dependent on good
supply chain management;
■
ultimate quality, whether fresh or further processed,
is largely determined ‘on farm’ and it is there that
many value-added issues need to be addressed and
solved;
■
horticulture is at the intensive end of the crop
production spectrum, requiring specialist attention to
achieve ecological sustainability, and in many cases
the produce is grown close to or within urban areas
with some resultant natural resource use and access
conflicts; and
■
demand for healthy, fresh, natural produce is growing
with consumer incomes and health awareness.
CSIRO’s Strategic Response
Increasingly, private companies and voluntary funding
groups are co-investing with CSIRO and other agencies,
forming R&D partnerships and providing direct and
valued input to research project steering committees.
The key issues to be addressed by CSIRO research are:
■
crop surety - paddock to plate (crop management)
and a need for systems that can predict and manage
both yield and quality;
■
genetic advances (crop improvement) through
molecular genetics and indirect (genetic mapping)
means; and
■
market access and new incursions of pests and
diseases from imports accompanied by increased
pressure to ensure pest and disease free status of
exports.
The key to a good wasp. An interactive, user-friendly
web site on Encarsia parasitic wasps in Australia is
now up and running on the internet at:
http://www.ento.csiro.au/science/encarsia/. This group
of wasps contains species that are important biological
control agents of whiteflies and scale insects, which are
significant horticultural pests in Australia and the Pacific
region. The web site provides information about
taxonomy, biology, and distribution of Australian
Encarsia species attacking the silverleaf whitefly and
the greenhouse whitefly. The pictorial key enables
identification of slide-mounted specimens of Encarsia
species.
New cashews, top croppers. A research program on
cashew improvement and management, in collaboration
with the Queensland Department of Primary Industries
(QDPI), has been completed. The cashew management
manual is now available to growers as part of the QDPI
Agrilink series. The cashew improvement component
has produced a number of new selections that are
higher yielding and have larger and better-quality
kernels than those currently grown anywhere in the
world. They have the potential to increase grower
returns in the order of 2.5 - 3.5 times and represent a
very significant improvement. A licence has been
granted for commercial propagation and growers of the
new varieties will pay royalties on their crop.
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Mini sultana takes the cake. A Plant Breeders Rights
application has been submitted for a new CSIRO-bred
dried grape variety. It is a high yielding, small sultana
type which is resistant to rain damage and ideal for
addition to breads and other food products.
Identifying risky imports. CSIRO was called upon by
Agriculture, Fisheries and Forestry Australia to provide
expert advice late in 2000 regarding the risk of
introducing the Glassy Winged Sharpshooter, together
with Pierce’s Disease, in imported table grapes from the
United States. Based on CSIRO’s advice it was decided
by the Australian Quarantine and Inspection Service that
the risk to the Australian Industry was too high.
The major trends in science and technology
underpinning the Sector are:
■
the impact of molecular biology and gene
technologies;
■
increased emphasis on welfare in livestock
husbandry;
■
understanding needs and demands of consumers;
■
knowledge management for better decision-making;
■
integrating socio-economic and environmental
objectives into redesigned production systems; and
■
closer participation by stakeholders in R&D.
CSIRO’s Strategic Response
Dr Nigel Scott
Plant Industry
To meet the needs of the Sector, CSIRO’s main aims will
be to assist efficient production, sustainable resource
use, manufactured inputs and market and consumer
issues. To achieve these aims, research will focus on:
Tel (08) 8303 8626
Email [email protected]
■
protection of Australia’s animal health status to allow
continued trade in and access to international
markets;
■
creation of new business opportunities identified
through an understanding of consumer requirements
in key markets;
■
adoption of new management systems and policies
that better integrate economic, environmental and
social objectives;
■
adoption of viable production and processing
procedures that minimise undesirable social, human
health and environmental impacts of the Sector’s
industries; and
■
improved animal performance achieved by improving
their inherent capacity to resist diseases and
parasites.
Meat, Dair y and Aquaculture
Sector
Industry Context
Australia’s meat, dairy and aquaculture industries
produce more than $13 billion worth of products each
year and bring in $6.5 billion in export earnings. This
Sector encompasses red meat (beef and sheep), pigs,
poultry, new animal industries, milk production and
aquaculture of finfish, crustaceans and shellfish. Growth
in this Sector will come from providing premium food
products to increasingly affluent and discerning
customers.
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Research Achievements
Better BBQ prawns. CSIRO scientists have achieved
genetic improvement of prawnstocks for Australian
industry. Rapid improvements in the profitability of
one major commercial prawn species have clearly
demonstrated the benefits of genetic improvement.
Components of the approach by CSIRO and industry
are now being applied to three other commercial
prawn species.
A tool for farmers to breed better beef. Marbling is the
development of small flecks of fat throughout the
muscle of cattle - and is a highly desirable trait in beef
markets like Japan and the USA, because consumers
associate it with high quality, flavour and tenderness.
CSIRO has developed a genetic test now commercialised
as the GeneSTAR Marbling test. It allows cattle
producers to test bulls - which are naturally lean - for
their capacity to pass on the ability to deposit the right
degree of marbling to their offspring. The genetic test is
an important tool by which farmers can improve their
cattle breeding programs.
Protecting Australia’s prawn health status.
Strengthening prawn disease and seed stock
management in the region, and thereby reducing
the risk of disease spreading to Australian industries,
was the aim of a series of workshops and seminars
presented by CSIRO in Vietnam in 2000. The workshops
on disease diagnosis and health management training
were supported by Australia’s Industry Science and
Resources Technology Diffusion Program.
Better management of grazing land. Recommendations
made by CSIRO to graziers have allowed them to
achieve better land care while maintaining production
levels. Resting paddocks during the wet season and
using fire to control rubbervine are now being widely
applied in rangelands in northern Queensland and the
Northern Territory.
Pondman software package. Pondman computer software
assists prawn farmers to manage their farms more
effectively and profitably and is now in use on 80 per
cent of Australian prawn farms. The software assists with
water quality management, reducing feed waste, and
management of water exchange. The software has been
widely promoted, and is now attracting overseas sales.
National redistribution of biocontrol agents for pasture
weeds. A national redistribution network for the
biological control of Paterson’s Curse and thistles
was established in mid 1990. With support from the
Cooperative Research Centre for Weed Management
Systems and state departments of agriculture in
Southern Australia, the network has distributed
biocontrol agents for both of these weeds. Last
year the seed weevil for thistles was reducing seed
production by up to 83 per cent.
Shaun Coffey
Livestock Industries
Tel (07) 3214 2999
Email [email protected]
Cheaper environmental land assessment. Enhanced
satellite images were provided to the Environmental
Protection Agency to assist in a major land resource
assessment being undertaken with Natural Heritage
Trust funds in the Desert Uplands region in Central
Queensland. The techniques developed and supplied
by CSIRO were essential in greatly reducing survey
costs by enabling the survey team to identify more
clearly the major land types and to select appropriate
transects and representative sampling sites. The land
is currently used mainly for extensive cattle grazing and
the resource assessments will be used in developing
future sustainable land use and management systems.
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Textile, Clothing and Footwear
Sector
Industry Context
CSIRO’s Strategic Response
The Australian textile, clothing, footwear and leather
(TCF&L) industries continue to undergo restructuring.
Competition from lower cost economies such as China
and the cessation in June 2000 of the Import Credit
Scheme (ICS) has hastened the closure of a number of
companies and forced other companies off-shore to
take advantage of lower labour costs. The decline
during the last year in turnover and capital investment
reflects the difficult economic circumstances in parts of
the industries. However, a positive sign of the changing
focus and culture of the TCF&L industries is that the
value of exports, as a percentage of turnover, continues
to increase.
CSIRO will:
To assist the industries prepare for foreshadowed tariff
reductions in 2005, the Federal Government has
introduced the Strategic Investment Program (SIP) that
will provide $700 million during 2000-05 to reimburse
industry for investment in new capital equipment and
for R&D into innovative product development.
■
assist the domestic TCF&L industries meet the market
demand for new and niche products, through
innovations in products and processes that reduce
costs and enhance quality. The demand for Australian
wool will be increased through the development of
new and easy care products that include novel
blends;
■
engage in partnerships and networks with industry to
maximise the benefits of the Federal Government’s
TCF&L Strategic Investment Program;
■
increase on-farm productivity by further development
of enhanced decision support systems that link
fertiliser, pasture growth, nutrition and wool
production. Increasing on-farm productivity will be
done within a framework of ecological and social
sustainability;
■
assist in the reduction of the mean fibre diameter of
the Australian wool clip without reducing yield;
■
work closely with the cotton industry to reduce the
use of pesticides through integrated pest
management systems and maximise better water use
practices;
■
improve the links between cotton and wool
producers and the processing industries through
enhanced measurement and prediction systems;
■
diversify the research portfolio to embrace all textiles
and continue to expand resources into cotton
processing and technical textiles;
■
increase linkages with overseas processing industries,
especially in India, China and Vietnam to encourage
increased exports of Australian wool and cotton; and
■
continue to work to maintain the ‘clean and green’
image of Australian natural fibres and leather
products and to ensure compliance with eco-labelling
requirements.
Important issues for the industries include:
■
the production of high quality specialised textiles,
clothing and footwear that reflect Australia’s unique
climate and lifestyle;
■
an increasing trend towards quality and easy care
products that are perceived to be ‘clean and green’
and environmentally friendly;
■
sustainability of natural fibre production especially in
relation to land degradation and continued
development of integrated pest management systems
for the cotton industry; and
■
investment by wool growers in management practices
and technologies that increase their productivity and
reduce the mean fibre diameter of the clip to enable
consumer demand for lightweight clothing to be met.
Following the restructuring and privatisation of the
Australian Wool Research and Promotion Organisation
(AWRAP) and The Woolmark Company, two new
companies have been established namely The
Woolmark Company Pty Ltd and Australian Wool
Innovations Pty Ltd.
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Research Outcomes
Improved cotton varieties. Cotton varieties, developed
by CSIRO, have had a considerable beneficial impact on
improved fibre quality and productivity of the Australian
cotton industry especially in relation to increased
disease and pest resistance. These advances have been
reflected in higher export earnings for Australian cotton
and increased external earnings for CSIRO through
royalties. More varieties are due for release in the next
two years. The Cotton Research and Development
Corporation (CRDC) contributed to the funding of this
research.
Easycare garments. Increased demand for easycare
performance is a long-term trend within both the
fashion and traditional garment manufacturing
industries. As the ‘dry clean only’ label becomes a
significant disincentive to purchase, consumers are
developing an expectation that garments will withstand
repeated machine washing and tumble drying while
maintaining their ‘just pressed’ appearance without the
need for more than minimal ironing. To achieve total
easycare performance, garments must be engineered so
that after laundering, the seams remain flat and without
pucker, the fabric is wrinkle free and creases or pleats
remain in place. CSIRO, in projects jointly funded by
Australian Wool Innovation and The Woolmark
Company, has developed technologies that impart total
easycare performance to pure wool garments that
equals or exceeds that of similar garments
manufactured from cotton, synthetics fibres or their
blends. These technologies have been adapted so that,
according to the requirements of the garment maker,
the garment can be manufactured from pre-treated
fabric or all necessary processes can be carried out on
the pre-formed garment. This flexibility will broaden the
range of garment makers who can apply the
technologies.
SiroLock. Textile carding is an important step in the
processing of all types of staple fibre for both woven
and non-woven products. An important stage in the
carding of fibres is the assembly of the opened and
individualised fibre into webs. A new analysis of the
process showed that the efficiency of this process could
be significantly improved by modifying the conventional
profile of the card wire by the inclusion of ‘steps’ on
the active face. The technology has been patented and
development of the technology is proceeding with the
European company ECC-Platt with industrial trials under
way in a number of plants worldwide. The new
technology will be marketed under the tradename
SiroLock.
Fining the clip. Consumer preferences are increasingly
focussed on softer, prickle-free, lightweight fabrics
which require wools of fine diameter. The results of
extensive CSIRO studies have had a major impact on
the process of fining the Australian Merino wool clip
and have clearly demonstrated that breeders can move
their flocks to finer wool without compromising other
traits of economic importance. A software package,
SelectGene, provides breeders with the capability of
setting appropriate breeding goals and selection
strategies. The Woolmark Company contributed to the
funding of this research.
Australian medical sheepskins. Pressure ulcers cost the
Australian health system in excess of $350 million per
year. The new Australian Medical Sheepskin, developed
by CSIRO in collaboration with hospitals and industry,
is becoming recognised worldwide as a highly effective
product for reducing the incidence of pressure ulcers.
The product, which is expected to perform for over
50 cycles of patient use and laundering, provides a
most cost effective way of reducing patient trauma.
The research was supported by Meat and Livestock
Australia, the National Health and Medical Research
Council and the Sir Edward Dunlop Medical Research
Foundation.
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Improved oral delivery of therapeutics. Wool production
is heavily influenced by internal parasite burdens.
CSIRO has developed a technology which enables
therapeutics and other actives to be administered orally
to livestock in a solid formula. This technology offers
increased availability of therapeutics, greater
convenience of formulation, labour-saving
administration and significant potential advantages in
stability, packaging and storage. CSIRO is now seeking
a commercial collaboration to develop the technology
for the Australian sheep industry.
Benchmarking of Chinese and Indian wool processing
mills. Following the signing of Government-toGovernment Memoranda Of Understanding, two projects
aimed at improving the processing and environmental
performance of wool processing mills in China and
India are well under way with the first phase of each
project having been completed. The projects are being
undertaken by CSIRO in concert with the Australian
Centre for International Agricultural Research and
AgWest. The initial phase of the projects involved
detailed process and environmental audits of early
stage processing mills and quantitative benchmarking
of spinning mills’ performance against world’s best
practice. These data are invaluable for designing
process improvement projects for the mills.
Animal production from saline land. ‘Animal production
from saline land’ is a national initiative that commenced
in 2000, led by CSIRO. Its purpose is to contribute to
the sustainability of Australian agricultural industries
and rural communities by putting profit into saline
pastures. One approach is the utilisation of such land
for fine wool production. Studies have commenced on
the performance of animals on saline pastures in four
States. These are determining the nutritive value of new
annual and perennial pasture plants.
Dr Peter Gordon
Textile and Fibre Technology
Tel (03) 5246 4104
Email [email protected]
New Centres of Excellence for Textile and Fibre
Technology. The Commonwealth and Victorian
Governments and CSIRO have agreed to establish two
new Centres of Excellence in ‘Technical Textiles’ and
‘Advanced Wool Products’ at CSIRO, Geelong, Victoria.
The initiative is aimed at stimulating advanced training,
education, research and product development for the
TCF&L industries. The Commonwealth is providing a
grant of $1.6 million, the Victorian Government is
providing $1 million in cash and $5.5 million in
equipment and CSIRO $2.1 million in cash, to establish
the two Centres, which will be operated by CSIRO.
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Chapter 7
Chief Executive’s Special Projects
In December 1997, the CSIRO Executive announced a series of special research and demonstration projects
to be undertaken by multidisciplinary teams at CSIRO with the goal of building a better future for Australia.
These specially targetted projects also demonstrate the effectiveness of CSIRO’s research capability when directed
to short-term goals. From a large list of imaginative proposals, nine were selected, based on their scientific
potential, the benefit to Australia and the ability to deliver results in a relatively short time.
Over $20 million, generated from the sale of assets and internal savings, was allocated to these projects.
After three years, all have now made considerable progress, many moving on to a further stage with other funding.
A brief summary of the projects and their results follows.
Towards Sustainable
Energy >>
Low Emission Transportation
Technologies >>
Aim – to demonstrate “proof–of–concept” of a novel
method for generating power from methane–containing
gases (eg natural gas and coal bed methane etc) and
solar energy at very high efficiency and with greatly
reduced greenhouse gas emissions.
Aim – to demonstrate an integrated group of
hybrid–electric car technologies designed to improve
fuel efficiency and reduce greenhouse and noxious gas
emissions.
Results – a demonstration facility has been designed
and built at Lucas Heights; its centrepiece is a 107
square metre thermal concentrating dish. It is currently
being operated to evaluate the solar–methane
reforming and gas processing steps whilst awaiting the
delivery of a 10 kilowatt polymer electrolyte membrane
(PEM) fuel cell from overseas. Once the fuel cell has
been received, fully integrated operation of the facility
is planned to assess the overall technical and economic
performance of the concept.
A laboratory–scale fuel cell test facility built at Clayton
is providing specialist technical data to support the
power generation component of the demonstration
project. It is also being used to help define CSIRO’s
future strategic efforts in PEM fuel cell technology
R&D. There is considerable interest in the technology
from a number of industrial sources and substantial
spin–offs from the project are expected.
Jim Edwards
Energy Technology
Results – CSIRO provided complete powertrains for
two low–emission car projects: one for Holden Ltd to
incorporate in a Commodore–size car, typical of the
most common Australian family car, called
ECOmmodore; the other for a concept car known as
the aXcessaustralia Low Emission Vehicle, designed to
demonstrate a wide range of innovations produced by
the Australian automotive components industry. The
CSIRO powertrains consist of electric motors and
generators, supercapacitors, high performance batteries,
power and control electronics, and integrated power
management systems.
With the help of additional funds provided by the
Federal Government, an international marketing
program was put in place for the aXcessaustralia car.
More than $700 million of new automotive component
export business resulted from an earlier aXcessaustralia
project; the new Low Emission Vehicle has already
generated over $500 million of new export business
potential.
David Lamb
Manufacturing Science and Technology
Tel (02) 9490 8950
Email [email protected]
Tel (03) 9662 7787
Email [email protected]
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Advanced Millimetre–
wave Integrated Circuits for
Radio Astronomy and
Telecommunications >>
Aim – To develop state–of–the–art Indium Phosphide
(InP) integrated circuits (ICs) and to incorporate them
in radio astronomy and telecommunications systems to
demonstrate their technical relevance. CSIRO’s Large
Radio Telescope Array (The Australia Telescope) has
provided an ideal demonstration platform in achieving
this goal.
Results – This project has given CSIRO a world lead in
the application of MMIC technology to radio astronomy
instrumentation at millimetre wavelengths. The technical
solutions developed for radio astronomy systems have
wide applicability in the commercial world. Next–
generation mm–wave radio systems for application
to wireless telecommunications and to real–time
thermal imaging are now under development using
these InP integrated circuits.
The technical capabilities, which formed the basis for
this project, were developed through an alliance with
a US–based company, TRW Inc, and are based on
indium phosphide (InP) high–electron–mobility
transistors (HEMTs) and heterojunction bipolar
transistors (HBTs). CSIRO’s ultra–high performance
InP HEMT–based circuit designs have extended TRW’s
capability in this field and represent new achievements
in integrated circuit technology, exhibiting lower noise,
higher frequency response, wider bandwidth and
superior cryogenic behaviour to that previously
reported elsewhere.
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Specific achievements with HEMT–based circuits include:
■
best IC amplifier above 200 GHz (world first in this
band using standard foundry process);
■
first time ever that cooled 75–110 GHz IC amplifiers
have been installed and used for astronomical
observations in an interferometer system;
■
world–first wideband (40–60 GHz) bidirectional
amplifier (design patented by CSIRO);
■
world first bidirectional amplifier at 75–100 GHz; and
■
first 100 GHz voltage–controlled oscillator using
InP HEMTs.
The enhancement of the CSIRO’s capabilities to include
HBT technology has provided us with a very important
set of new circuit designs and expertise that can be
applied to the development of the next generation
of mm–wave digital radios. The HBT effort has also
provided CSIRO with critical experience in the design
of integrated photonic systems, specifically
monolithically integrated photonic/millimetre–wave
interface circuits.
Dr John Archer
Telecommunications and Industrial Physics
Tel (02) 9372 4488
Email [email protected]
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Sustainable Urban Water
Systems >>
Aim – to improve the sustainability of Australia’s urban
water systems in the context of social, economic and
climate change.
Results – several alternative approaches have been
developed incorporating reuse of wastewater and
stormwater, and potentially operating at different
scales than traditional systems. Thus it appears
efficient to build small scale sewage treatment plants
serving new urban developments for, say 5 000 people,
incorporating reuse of storm and wastewaters, rather
than continue to develop ever larger, less flexible
systems. Other findings showed that peak flows in
urban water and wastewater systems, and the
pressures at which Australian systems often operate,
are significant drivers of cost, and may inhibit the
adoption of more sustainable approaches. To help
transfer the outcomes of this project to users,
collaborative projects have been set up with key
industry groups such as the Water Services
Association of Australia and Brisbane City Council.
Dr Andrew Speers
Building, Construction and Engineering
Tel (02) 9490 5437
Email [email protected]
Novel Technologies for Feral
Animal Control >>
Aim – to develop a method for producing animals that
are fertile only in captivity (ie only when provided
specific releasing substances).
Results – laboratory experiments with fish, oysters and
mice have achieved up to 95 per cent sterility. This can
be reversed by the addition of a simple compound to
the rearing water (thus making possible normal rearing
of the animals in captivity). A commercialisation plan
for the technology, which has been patented, is being
developed, and discussions are underway with overseas
and Australian groups regarding licensing and the
development of specific variants on the technology
to fit specific market niches. A further variant on the
technology appears to have considerable potential for
the safe and cost–effective control of pests – such as
carp. Discussions are underway with State and
Commonwealth agencies regarding further development
leading to potential application of the technology.
Dr Lyn Hinds
Sustainable Ecosystems
Tel (02) 6242 1729
Email [email protected]
Dr Ron Thresher
Marine Research
Tel (03) 6232 5397
Email [email protected]
An Integrated Approach to
Sustainable Land
Management in the
Murray–Darling Basin
(the ‘Heartlands’ project) >>
Aim – to develop and test strategies to rehabilitate
agricultural landscapes in the Murray–Darling Basin.
This will be achieved through integrated land, water,
climate, forestry, biodiversity and field crops research.
Results – Heartlands is run as a consortium led by
CSIRO and the Murray–Darling Basin Commission
(MDBC). Other groups participating include catchment
management boards and authorities, State natural
resource management agencies, Landcare groups, and
landholders.
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After extensive community, agency and science
consultation, a 5–year work plan has been developed,
which focuses on research in four catchment areas and
gaining ownership and endorsement of the initiative by
local communities and stakeholders. The initiative was
launched nationally in December 2000 by the Hon
Wilson Tuckey, Minister for Forestry and Conservation
and the first on–ground works (tree planting) have
commenced.
Achievements in specific areas include:
■
wheat and barley: new transporters responsible for
importing sucrose and other metabolites into the
developing endosperm of the grain were identified
and studied, as well as a new class of seed storage
protein that has the potential for altering flour
processing properties. New molecular markers for use
in breeding were identified;
■
rice: the technology, including the design of new DNA
vectors, was established to generate large numbers
of mutations using transposable elements. The
developments were demonstrated to work by
producing rice plants with mutated phenotypes;
■
sugar cane: new families of transporters of sugars
and metabolites were identified and patent
protection taken out on one novel class of
transporter. A strong internationally competitive
position in the area of gene discovery in developing
sugar cane stems was established;
■
cattle: technology to analyse the difficult tissue of
the skin was established and has positioned the
group well to participate in new projects targeting
molecular markers for breeding economically
important traits; and
Aims – to participate in International Genome Projects
in plants and animals in order to gain access to data
generated by overseas laboratories and to isolate key
genes for quality and productivity in wheat, barley,
rice, sugarcane, cattle, and sheep.
■
sheep: several new families of genes were identified
as being “in the right place and at the right time” for
influencing wool fibre quality. The study has provided
a suite of novel genes for use as molecular markers
in breeding programs.
Results – international positioning of each of the
participating groups in the fast evolving area of
genomics was achieved through overseas contacts
and workshops.
Dr Rudi Appels
Plant Industry
Additional funding has been gained for on–ground
works from the Natural Heritage Trust, for a program
of airborne salt mapping from the MDBC, and for other
research from the MDBC and Land and Water Australia.
Dr Hamish Cresswell
Land and Water
Tel (02) 6246 5933
Email [email protected]
A Suite of Genetic
Engineering Technologies >>
(a) Genomics and Gene Discover y
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Tel (02) 6246 5495
Email [email protected]
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(b) Bioinfor matics Initiative
(c) Bioactive Molecule Initiative
Aim – to provide a secure, single point access to
databases of genomic and biodiversity information.
Aim – to combine new chemistry with new biology
with CSIRO’s diverse biota collections for the discovery,
design and development of biologically active
compounds for the pharmaceutical, agrichemical,
nutraceutical and food industries.
Results – informatics tools developed for biodiversity
data (BioLink®) are now in use in the national wildlife
and insect collections managed by CSIRO, and the
Australian Museum and several State based institutions.
BioLink® has received sponsorship from the National
Science Foundation (USA), and has been adopted by
the Academy of Natural Sciences, Philadelphia and
biological collections in Indonesia (World Bank
sponsorship). It is under evaluation by other
institutions in Europe and Australasia. Collaboration
with the Australian National Genomic Information
Service has led to the expansion of the informatics
capability of research groups within CSIRO, and has
fostered linkages to State based bioinformatics
initiatives building an expanded national infrastructure
and network in biotechnology. Negotiations are under
way with Plant Health Australia to use the database
integration tools developed within the project to build
a national pest and disease data network, an essential
contribution to Australia’s biosecurity and trade in
agriculture.
Dr John Curran
Entomology
Tel (02) 6246 4134
Email [email protected]
Results – integration with the Bioinformatics Initiative
enabled the mining of the “big science” international
genomics databases and this, combined with in–house
analysis of biological systems led to the discovery of:
■
a class of molecular targets for pest control whose
presence in invertebrates had previously been
discounted;
■
novel molecular target sites in bacteria; and
■
compounds with useful biological activities
obtained from insects, marine microalgae and
synthetic sources.
As a result, CSIRO has developed early leads in
nutraceutical, drug and agrochemical discovery and
validated collections of biota for applying to the
discovery of bioactives. Commercial opportunities
are now being explored in the development of
anthelminthics, insecticides and antibiotics, in the
reduction of cardiovascular disease risk, and in broad
aspects of biodiscovery.
Shaun Coffey
Livestock Industries
Tel (07) 3214 2999
Email [email protected]
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Chapter 8
Awards and Honours
In 2000-01, CSIRO scientists won international and national acclaim for the excellence of their work. These awards
are further demonstration of our effectiveness in research and its application in industry and the community.
The Prime Minister’s Prize
for Science >>
The inaugural Prime Minister’s Prize for Science was
won in October 2000 by Dr Jim Peacock and Dr Liz
Dennis of CSIRO Plant Industry, for the discovery of the
flowering switch gene. By manipulating the flowering
switch gene it will be possible to produce strains of
canola, wheat and other crops that flower at the right
time for the climate in which they are grown, so
reducing the risk of yield losses.
Dr Liz Dennis and Dr Jim Peacock
Photo: Brad Collis
The Marcus Wallenberg
Prize >>
Dr Rob Evans, (Forestry and Forest Products), was
awarded the world’s premier international forestry
prize in 2001 his pioneering work in characterising
the quality and structure of wood. This led to the
development of an instrument called SilviScan,
which allows the rapid analysis of wood samples
to determine the optimum and most valuable end
use of the timber.
This was the second consecutive year in which
a CSIRO scientist was recognised by the Award,
with Dr Bob Leicester, (Building, Construction and
Engineering), receiving the Award in 2000 for his
research on the safety, fire performance and
durability of wood as a building material.
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Dr Rob Evans
Photo: CSIRO Forestry & Forest Products
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Australian Honours >>
Public Service Medal >>
Order of Australia
Dr Anthony (‘Nick’) Nicholls, (Sustainable Ecosystems),
for outstanding service in the field of ecological
research.
Officer (AO)
Dr Ian Common (retired Entomology) for service to
entomology, particularly the study of Lepidoptera insect
pests, their effects on agriculture and the development
of adequate controls, and to community education
through the publication of books dealing with insects
and their role in the environment.
Dr John Whiteoak, Australia Telescope National Facility
(ATNF), for outstanding public service in the field of
radio astronomy, especially for his contribution towards
the Australia Telescope National Facility and his efforts
to preserve the high frequency radio spectrum for
scientific research.
Australian Awards >>
Member (AM)
Dr John Black (retired Animal Production) for service
to animal science, particularly in the field of livestock
nutrition research, and to the community through
bushfire control and sporting organisations (inventor
of Auspig).
Dr Jackie Cai, (Textile and Fibre Technology), received
the Annual Achievement Award for Innovative Scientific
Research at the annual review of the Australian Cotton
CRC. The achievement award highlighted the new
bleaching technology established for cotton/wool
blends during the first year of the project.
John Brockwell (Honorary Fellow, Plant Industry)
for service to research in the field of rhizobium ecology
and its application to pasture, grain and oilseed
legumes, and to promotion of the game of bridge.
Dr Russell Muchow, (Sustainable Ecosystems), won the
2001 Australian Medal of Agriculture, Australian Institute
of Agricultural Science and Technology.
Dr John Radcliffe (retired Corporate Executive) for
services to agricultural science policy and land and
resource management through the dissemination
of scientific knowledge in support of sustainable
development, biosafety, and the conservation
of agricultural biodiversity.
David Tongway and Norman Hindley, (Sustainable
Ecosystems), won the Australian Minerals and Energy
Environment Foundation (AMEEF) Environmental
Excellence Award (Individual/Small Team Award) for
a field monitoring method developed to assess the
effectiveness of minesite rehabilitation.
Medal (OAM)
Dr Fiona Solomon, (Minerals), received an Australian
Minerals and Energy Environment Foundation (AMEEF)
Environmental Excellence Award, Travelling Scholarship.
Dr George Bornemissza (retired Entomology) for
services to science and entomology, particularly through
the ecological study of dung beetles and the
introduction of new species to Australia.
Dr Don Sands (Entomology) for service to the
horticultural industry in Australia and the Pacific Region
through the development of biological pest control
solutions, and to entomology, particularly through
conservation projects.
Dr Brian Cooke, (Sustainable Ecosystems), won the
Australian Museum POL Eureka Prize for Environmental
Research for his three decades of research into
controlling wild rabbits.
David Lamb and team, (Manufacturing Science and
Technology), won the Automotive Engineering Excellence
Award for outstanding contribution to advancing
technology.
Dr Arthur Malcolm Gill, (Plant Industry) for services
to bushfire research.
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Dr Jeff Short, Jacqui Richards and Bruce Turner,
(Sustainable Ecosystems), of the Useless Loop
Community Biosphere Project Group, won the Banksia
Environment Foundation Award for Community
Group Achievement.
CSIRO Publishing won the Banksia Environment
Foundation Award for Communications, for the
magazine, Ecos.
Dr David Roget and team, (Land and Water), won the
BHP Billiton Landcare Research Award for 2001 for work
on the Mallee Sustainable Farming project. The project
also received an award for the inaugural River Murray
Catchment Board Environmental Awards under the
category of ‘Changing Farming Practices’.
Dr Bryan Eaton, Dr Allan Gould and Dr Peter Daniels,
(Livestock Industries), won the Charles C Shepard
Science Award awarded for co–authorship of ‘Nipah
virus; a recently emergent deadly Paramyxovirus.’
Dr Bill Mathew, (Minerals), won a Clunies Ross National
Science & Technology Award in 2000 for research that
led to online analysis techniques worth millions of
dollars to the Australian minerals industry.
Laurie Jarvis and team, (Manufacturing Science and
Technology), won the Consensus Manufacturing Award
2001 for innovation in gas tungsten arc welding with
Weldtronics Pty Ltd and Meanderlyn Pty Ltd.
The Excellence in the Development of Technology from
the Government Sector 2000 Award was won jointly
with the CSIRO spin–off company Quantm Ltd. The
Quantm super–computer system replaces existing
manual techniques with a revolutionary planning tool
designed specifically to support skilled planners
through the complex process of route selection.
Dr Bruce Hobbs, CSIRO Deputy Chief Executive –
Minerals and Energy was awarded the John Jaeger
Medal 2001 by the Australian Academy of Science for
investigations of a high order into the solid earth
or oceans of Australia.
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Dr Christine O’Keefe, (Mathematical and Information
Sciences), won the Medal of the Australian
Mathematical Society. The Medal is awarded in
recognition of outstanding work in the mathematical
sciences, conducted in Australia, by scientists under
40 years of age. Christine is both the first woman to
win the award and the youngest winner ever.
The Diagnostic Sciences Program Team, led by Dr Alex
Hyatt, from CSIRO’s Australian Animal Health Laboratory
won the National Quarantine Award (Category of Science
and Research Contribution to Quarantine).
Dr Denis Saunders, (Sustainable Ecosystems), won
a Prime Minister’s Environment Award 2000 for
outstanding individual achievement for his significant
contribution to the research and practice of biodiversity
conservation.
The Sorghum Stay–Green Team, a collaboration
between the Department of Primary Industries and
CSIRO, won the Queensland Primary Industries
Achievement award (Innovation and Development) 2001
for drought resistance (stay–green in sorghum) project.
Dr Lynne McIntyre, (Plant Industry), led the CSIRO
component.
Dr Paul Yuk Hung Fung, (Forestry and Forest Products),
won the Rabobank Agribusiness Awards for Excellence
for the ITP Mallee.
Dr Colin Jacka and team, (Telecommunications and
Industrial Physics), won a Research Excellence Award
from the Australian Coal Association for the
development of an emergency mine communication
system.
Riverside Corporate Park, CSIRO Corporate Property, led
by George Harley, won the Rider Hunt Award (National).
Chosen from a field of six finalists, the award is given
to a major commercial property development displaying
an efficient use of capital, quality design and services,
positive industry and community perception and owner
and user satisfaction.
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International Awards >>
Dr John W Smith, (Petroleum), won the USA Alfred
Treibs Medal. His original ideas on the origins of
Australia’s oil and gas deposits helped discover our
current reserves of these precious fossil fuels.
Dr Barry Inglis, (National Measurement Laboratory),
won an Asia Pacific Metrology Programme award for his
long–term contributions to regional and international
metrology.
Dr Steve Midgley, (Australian Tree Seed Centre), won
the Asia–Pacific Regional Award for Excellence for his
work on wattles and eucalypts and casuarinas.
Achim Leistner, (Telecommunications and Industrial
Physics), won the David Richardson Medal 2000. The
David Richardson Medal recognises outstanding
achievements in technical optics.
Professor Dalway Swaine, (Energy Technology), received
an Excellence Award from the Energy and Environmental
Research Centre (EERC) in North Dakota, USA for his
assistance and friendship given to the Centre for Air
Toxic Metals.
Dr Alan Andersen, (Sustainable Ecosystems), won the
Far Eastern Economic Review Innovation Award for his
work on using ants as biological indicators.
Dr Shirley Jeffrey, (Marine Research), won the Gilbert
Morgan Smith Medal, USA which recognises excellence
in marine and freshwater research.
Dr Frank Bekes and Dr Peter Gras, (Plant Industry), won
the Harald Perten Prize of the International Association
for Cereal Science and Technology (ICC) for advancing
our understanding of the nature of wheat dough at the
molecular level.
Dr John Jacobsen, (Plant Industry), won the Silver Medal
of the International Plant Growth Substances Association
in the field of plant hormones.
Dr W S (Voytek) Gutowski, (Building, Construction and
Engineering), won the International Plueddeman Award
for inventing a process which, for the first time enables
the successful adhesion of paints, adhesives, inks,
metallic coatings and other materials to otherwise
non–bondable plastics (polyethylene, polypropylene
and others).
Dr Rob Vertessy, (Land and Water), won the
International Union of Forestry Research Organisation
Scientific Achievement Award.
Drewe Ferguson and Frank Shaw, (Food Science
Australia), and the Meat Standards Australia (MSA)
Pathways Team were a joint winner of the International
Meat Secretariat Millennium Prize for Meat Science and
Technology for outstanding contribution to the
international meat industry.
Dr Vute Sirivivatnanon, (Building, Construction and
Engineering), won the Canada and USA Mohan
Malhotra Award for Supplementary Cementing Materials.
The award recognises more than 12 years research to
developing useful applications of fly ash, slags and
silica fume.
CSIRO, led by Dr Trevor Bird, and the CRC for Satellite
Systems were given a special award for co–operating
with the Communications Research Laboratory (CRL),
Ministry of Posts and Telecommunications, Japan,
on land–mobile satellite communication experiments
carried out in Australia using the COMETS satellite
in 1999.
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CSIRO Award Schemes >>
The Chair man’s Medal
The 2000 Chairman’s Medal and CSIRO Medals were
presented on 5 December 2000 by Sir Walter Bodmer,
FRS, Principal, Hartford College, Oxford University, UK.
The Low Emission Vehicle Project won the 2000
Chairman’s Medal.
The winners of the Chairman’s Medal were Team
Leaders: Mr David Lamb, Dr Michael Brothers,
Dr David Gates, Dr Howard Lovatt, Dr Peter Manins,
Dr David Rand, Dr Warren Thorpe, Dr Tony Vassallo
and Dr Mark Westcott.
From left to right are:
Dr Mark Westcott, Dr Colin Adam, Dr Tony Vassallo,
Sir Walter Bodmer, Mr Charles Allen, Dr Peter
Manins, Mr David Lamb, Dr Warren Thorpe,
Dr David Rand and Dr Howard Lovatt.
(other winners absent from event)
Team members: Dr Tom Beer, Mr Colin Bilson,
Mr Vic Buriak, Mr Lindsay Burke, Mr Daniel Byrnes,
Mr Chris Cantrall, Mr Brad Cowley, Mr Peter Cusack,
Mr Tom Davis, Mr Vivian D’Offay, Dr John Dunlop,
Mr Quentin Fletcher, Mr Paul Gwan, Dr Peter Hurley,
Dr Houyuan Jiang, Mr Bruce Kalan, Dr Lan Lam,
Mr Bruce Lanham, Dr Russell Newnham,
Ms Hilkat Ozgun, Dr Tony Pandolfo, Mr Glen Prout,
Professor Vic Ramsden, Mr Greg Redden,
Mr Randy Rhoads, Mr Claude Sacchetta,
Mr Chris Sharman, Dr Nariida Smith, Mr Trevor Smith,
Mr Werner Strecker, Dr Gerardo Trinidad, Dr Palitha
Welgama and Dr Wei Wu.
Photo: Photographic Services, QLD Department of
Natural Resources
CSIRO Medals
The CSIRO Medals for 2000 for CSIRO staff were
awarded for:
■
the world’s first high performance Local Area Network
by Dr Terence Percival, Mr Graham Daniels and
Professor David Skellern.
■
the development and commercialisation of the
Australian Magnesium Process by Dr Malcolm Frost,
Dr Keith Cathro, Professor Gordon Dunlop, Mr Richard
Furness, Mr Jason Hepburn, Mr Michael Hourn, Mr
David Jenkins, Mr Raymond Koenig, Dr William H
Kruesi, Mr Julian Land, Dr Raj Rajakumar, Dr Nigel
Ricketts, Dr Murray Rudman, Dr Greg Sheehan, Mr
Peter Tait, Professor Martin Welsh and Dr Fook Wong.
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■
amphibian disease research by Dr Alex Hyatt, Dr Lee
Berger, Dr Andrew Cunningham, Dr Peter Daszak,
Dr Louise Goggin, Dr David Green, Mr Harry Hines,
Dr Karen Lips, Mr Gerry Marantelli, Mr Keith
McDonald, Dr Helen Parkes, Dr Mark Ragan, Dr Ron
Slocombe and Dr Rick Speare.
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The CSIRO Business Excellence
Medal
CSIRO Business Excellence
Awards
The CSIRO Business Excellence Medal was awarded to
the Polyurethane Biomaterials Team, Dr Simon Carroll,
Dr Pathiraja Gunatillake, Mr Bryan Loft, Dr Gordon
Meijs, Dr Greg Simpson, Dr Mike Skalsky, Dr Tom
Spurling and Dr Jack Steele for the development and
manufacture of medical devices.
Mr Trevor Thacker won the Customer Relationship
Management Award for the Boeing project.
The exter nal CSIRO medal
BHP’s Project Falcon led by Dr Edwin van Leeuwen,
Mr Clive Affleck, Dr Mike Asten, Dr Maurice Craig,
Mr Peter Diorio, Dr Mark Dransfield, Mr Nick Fitton,
Mr Giles Hofmeyer, Mr Gary Hooper, Dr Jim Lee,
Dr Xiong Li, Dr Ken McCracken, Dr Tim Monks
(deceased), Dr Graeme O’Keefe, Mrs Marion Rose,
Mr Peter Stone, Mr Bob Turner and Mr Ken Witherley.
Dr Simon Carroll, Dr Pathiraja Gunatillake,
Mr Bryan Loft, Dr Gordon Meijs, Dr Greg Simpson,
Dr Mike Skalsky (Elastomedic), Dr Tom Spurling and
Dr Jack Steele won the Technology Transfer Award for
polyurethane biomaterials.
Russel Rankin, Stephan Wellink and Judy Marcure won
the Marketing and Business Development Award for
CSIRO’s Food into Asia program.
John Phillip Award for Promotion
of Excellence in Young Scientists
Dr Jawahar Patil, CSIRO Marine Research, won the John
Phillip Award for Promotion of Excellence in Young
Scientists.
Sir Ian McLennan Achievement for
Industr y Award
This award was established by the former CSIRO
Advisory Council in 1985 to recognise outstanding
contributions by CSIRO scientists to Australian industry.
The 2000 Award was presented on 9 November 2000
by Mr Campbell Anderson, President, Business Council
of Australia. The winner was Dr Tony Miller of CSIRO
Mathematical and Information Sciences for his skills
on the complex problems surrounding the optimal
design of spectacle lenses.
Dr Pathiraja Gunatillake, CSIRO Molecular Science,
received a Certificate of Commendation in recognition
of innovations in biostable polyurethanes.
From left to right are: Mr Campbell Anderson,
winner Dr Tony Miller, and Sir Peter Derham.
Photo: Mark Fergus
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Citation Awards
A Patent of Dr Trevor Bird, Dr Graeme James and
Stephen Skinner, (Telecommunications and Industrial
Physics), is the most often cited Australian Patent in
the Information Communications Technology area as
shown by a recent US analysis.
Dr Phil Larkin, (Plant Industry), won the Institute of
Scientific Information Award for Most Cited CSIRO paper
for Somaclonal Variation – a novel source of variability
from cell culture for plant improvement.
Dr Dick Manchester, (Australia Telescope National
Facility), Dr Paul Fraser and Dr Paul Steele (Atmospheric
Research), Dr Jeffrey Ladd, (Soils), and Dr Neil Turner,
(Plant Industry) were honoured within a group of 35
top Australian scientists who had been most frequently
cited in the science literature as measured by the
Science Citation Index.
Fellowships and Inter national
Societies
Dr Shirley Jeffrey, (Marine Research), was elected a
Foreign Associate of the Academy of Sciences, US.
Dr Andrew Johnson, (Sustainable Ecosystems), won an
Ambassadorial Fellowship of Rotary International to
study at J F Kennedy School of Government Harvard
University.
Dr John Angus, (Plant Industry), was elected a Fellow
of the American Society of Agronomy for crop agronomy
and modelling.
Dr Keith Bristow, (Land and Water), was elected a
Fellow of the American Society of Agronomy and Soil
Science Society of America 2001.
Dr Laurie Piper, (Livestock Industries), was elected a
Fellow of the Association for the Advancement of
Animal Breeding and Genetics.
Dr Greg Constable, (Plant Industry), Dr Elizabeth Heij,
(Land and Water) and Dr Glen Kile, (Forestry and Forest
Products), were elected members of the Australian
Academy of Technological Science and Engineering.
Dr David Michael Spratt, (Sustainable Ecosystems),
was elected a Fellow of the Australian Society for
Parasitology. The fellowship is given to distinguished
parasitologists who by their influence or endeavour
have promoted the advance of parasitology.
Dr Tony Della–Porta, (Livestock Industries), was elected
Fellow of the Australian Veterinary Association (awarded
for contributions to recognition of exotic animal
diseases, biocontainment and biological safety).
Dr James Ridsdell–Smith, (Entomology), was elected
a Fellow of the Institute of Agricultural Science.
Hugo Ilic, (Forestry and Forest Products), was elected
a Fellow of the International Academy of Wood Science.
Professor Ron Ekers, (Australia Telescope National
Facility), was elected President–elect of the International
Astronomical Union.
Dr Martin Cole, (Food Science Australia), was elected
Chairman of the International Commission on
Microbiological Specifications for Foods.
Dr Barry Inglis, (National Measurement Laboratory),
was elected to the International Committee for Weights
and Measures.
George King, (Building, Construction and Engineering),
was elected a Fellow of the National Association of
Corrosion Engineers for sustained professional activity.
Dr Rodrigo Bustamante, (Marine Research), was
awarded a Pew Fellowship, UK.
Dr Ravi Naidu, (Land and Water), was named a
Fellow of the Soil Society of America.
Dr David Michael Spratt, (Sustainable Ecosystems),
was elected a Life Member of the Wildlife Disease
Association for his editorial contributions to the Journal
of Wildlife Diseases, his efforts in establishing the
Australasian Section of the Wildlife Disease Association
and for his enormous contribution to the understanding
of the parasites and diseases of Australian fauna.
Dr Patricia Desmarchelier, (Food Science Australia), was
elected as a Fellow of the Australian Institute of Food
Science and Technology.
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3: The Future
Chapter 9
Strategic Action Plan
In early May 2001 CSIRO’s senior management team met for a week to develop a Strategic Action Plan for the
Organisation. The meeting followed a period of extensive consultation with many key stakeholders and clients
(including our Sector Advisory Committee Chairs) and with staff, and incorporates key elements of the work done
by 17 Strategic Priorities Task Groups that reported in late April.
This Chapter summarises the main features of this Plan in the language used in the Plan. It paints a map of the
future for the Organisation.
Six key messages >>
This is a volatile world. There are numerous, escalating
pressures on CSIRO, demanding the delivery of
relevant and meaningful outcomes. We must add
maximum value to the national enterprise and make
an indispensable contribution. We must look outward.
For CSIRO to realise its full potential, it is critical that
we make changes.
We must pay close attention to our customers and
the wider community. This demands an
uncompromising customer focus – delivering service
from excellent science.
We are currently spreading ourselves too thinly. We
need to focus our energies and to build teams and
quality partnerships, nationally and globally, increasing
our capability to deliver creative science and
innovative solutions in a timely way.
We must harness the full power of a unified CSIRO and
build multi–disciplinary teams that will address major
national challenges and global opportunities. This will
also enable us to move rapidly to identify and exploit
new opportunities and technologies that will emerge
beyond and across conventional boundaries.
If we succeed in implementing these changes, our
nation will benefit and our business and impact
will grow.
In summary, the key messages we have to live are:
■
Look out!!!
■
Focus
■
Service from Science
■
“One CSIRO”
■
Partner or Perish
■
Go for growth
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Strategic priorities >>
Eight strategic priorities have been defined as crucial
for CSIRO’s development in the immediate future.
* Our people
* Science base
The viability of CSIRO and our competitive advantage
is a direct result of the capabilities and achievements
of our staff. We need mechanisms to retain high
performers and to ensure that we improve our
management and supervisory skills.
Preserving and building the science base in CSIRO is
fundamental. Without top people, world–class facilities,
access to libraries and equipment, critical mass teams
and smart friends, there will be no new ideas and no
innovation. CSIRO needs to pay attention to all these
factors.
Key objective – to maximise our competitive advantage
and the delivery of quality and value–adding outputs by:
■ attracting, retaining, rewarding and motivating the
right mix of creative, highly skilled, outcome–focused,
team–oriented people; and
■
improving professional development for all of our
staff.
Actions – to achieve this objective we will:
➔
ensure CSIRO has a more attractive and competitive
performance–based salary and rewards system;
➔
Key objectives –
■
to grow, and focus, our science base;
■
to increase our investment in emerging science
and technology areas; and
■
to enhance CSIRO’s reputation for high quality
science and technology.
Actions
➔
grow key and emerging science areas
(rising to an additional $40 million per annum);
provide mentoring and career development at all
levels;
➔
focus and synergy – do fewer things better, across
boundaries;
➔
become a gateway to new careers in spin–off
companies; and
➔
➔
substantially enhance team–based skills and
processes.
double the number of our post–doctoral students,
establish a prestigious CSIRO post–doctoral program,
and enhance and expand our post–graduate training;
➔
establish strong science advocacy at Executive level
(eg through creation of a CSIRO Science Forum with
representatives from all levels);
➔
strengthen core capabilities in information and
communications technology and biotechnology,
across CSIRO; and
➔
take a whole–of–CSIRO perspective on scientific
standards, and focus.
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* Business development
Actions
The future success of CSIRO is dependent on engaging
productively with both business and the public sector,
because helping improve the performance of both is
one of the principal reasons for our existence.
➔
improve collaborative behaviour;
➔
better sharing of knowledge and information,
horizontally and vertically;
➔
strengthen Key Cross–Organisation Relationship
Management and Facilitation;
➔
develop and present a ‘one CSIRO’ external image;
and
➔
review, and appropriately amend, CSIRO–wide
support processes for ‘one–ness’.
Key objective – to increase revenue, significantly,
by building our commercial engagements around
a streamlined and vigorous investment model and
a new approach to business development.
Actions
➔
improve the process for choosing the right things
to do, then focus, ie design and implement a new
investment process based on CSIRO’s business
model, building upon the existing Sector and
Executive processes;
➔
substantially enhance our licensing and new
enterprise creation;
➔
expand our regional and global business activities;
➔
enhance our future commercial prospects by
creating and focusing on a differentiated
customer/stakeholder value proposition;
* Exter nal communication and
relationship management
CSIRO requires a more strategic and coordinated
approach to relationship development based on better
market analysis and better information on the benefits
of existing national and international relationships.
Key objective – strengthen CSIRO’s position and
➔
strengthen Key Account Management and Facilitation;
and
influence in Australia’s science and
technology/innovation systems, by constructively
engaging with government, industry, academia
and the public at large.
➔
strengthen business development planning.
Actions
* ‘One CSIRO’ – death of silos
CSIRO has major, core strengths relevant to the learning
culture of a ‘one CSIRO’ but for many years has had a
number of internal structures and practices that have
hindered both horizontal and vertical communication
and collective effort.
➔
build effective and coordinated external
communication strategies;
➔
develop an improved relationship with government
and political decision–makers and influencers; and
➔
improve our relationships with the Universities,
Cooperative Research Centres and the Academies,
and other research providers.
Key objectives –
■
move towards a ‘one CSIRO’ culture in order to
be able to respond rapidly in the best possible way
using CSIRO and global networks, without being
constrained by boundaries; and
■
identify radically new solutions through teams and
research synergies across CSIRO.
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* e–CSIRO
* Organising arrangements
CSIRO has much to gain by taking a leadership role
in the application of information technology in carrying
out its mission as a world–class scientific research
organisation, for example, in doing business in new
and different ways, and in achieving greater efficiency
in all our work.
To provide the foundation for a cohesive, outwardlooking and growing CSIRO – founded on great people,
teamwork, service and, above all, our excellent science
– we have re-examined our organising arrangements.
Central to the new arrangements will be flatter top
management structures reflecting the greater
empowerment of people at all levels in CSIRO. To
promote greater inter-operability between Divisions we
will form four self-managed groups of Divisions, with
one of the Chiefs from each group serving on a new
Executive Team, which will also include representation
from the newly constituted CSIRO Science Forum.
Key objective – The innovative use of Information and
Communication Technology to give us a competitive
advantage in everything we do and a peerless ability
to do business in new and unpredictable ways.
Actions
➔
develop and communicate a clear vision of e–CSIRO
which will excite and energise staff and customers
about opportunities and possibilities;
➔
develop an e–CSIRO plan and implementation
strategy;
➔
expand business opportunities through electronic
contact and delivery; and
improve operational efficiency through e–services,
harnessing the power of ‘one CSIRO’.
➔
Key objectives–
To introduce organising arrangements that:
■
allow CSIRO to realise its full capability to deliver
value from excellent science;
■
harness the full power of our multi-disciplinary teams;
■
increase CSIRO’s outward focus and responsiveness;
and
■
clarify and simplify decision-making processes.
Actions
* Operating excellence
There is a strong need to reinforce the notion that
CSIRO’s purpose is to deliver service from science and
stimulate an excellent service culture.
Key objectives–
■
to deliver excellent service to our customers
(internal and external); and
■
to pursue relentlessly operating efficiencies
and effectiveness.
➔
introduce/reinforce team-based management that
connects better into the Organisation;
➔
develop simpler and better strategic investment
processes; and
➔
decide, and agree with the Board, on a set of Key
Performance Indicators that provides the Chief
Executive and Executive Team with highly aggregated
whole-of-CSIRO measures for effectively managing the
Organisation.
Actions
➔
stimulate an excellent service culture, based
on customer feedback and appropriate training;
➔
eliminate subsidies from research services and
consulting;
➔
push down authority and accountability –
flatter management structure; and
➔
establish customer and staff satisfaction metrics
and measurement processes.
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Our purpose >>
By igniting the creative spirit of our people, we deliver great science and innovative solutions for industry, society
and the environment.
Our Five Year Mission >>
‘Where are we going, and what do we
want to achieve?’
We will help make Australia a stronger global
competitor in the 21st century through a new set
of large projects that will deliver outcomes around:
We will grow our business by 50 per cent to
$1.3 billion over the next five years.
Based on our intellectual assets and capabilities, we
will increase our revenue from licensing and enterprise
creation by a factor of ten over year 2000 levels.
We will ensure that CSIRO is a place where:
■
great people choose to work;
■
teams are responsive, energetic and
communicative;
■
we value our people, empower them and
reward their excellence; and
■
■
information and communication technologies
to build and enhance national performance
in the sector;
■
biotechnology to drive pharmaceutical
and agribusiness developments;
■
sustainable natural resource industries and
the building of world–class knowledge services
based upon them;
■
practical solutions to major environmental
challenges and safeguarding our biodiversity;
■
new and transforming manufacturing industries;
■
new companies to take Australian knowledge
products to the world;
■
science and technology to help Australians live
longer, healthier, more productive lives enriched
by scientific discoveries; and
■
technology to overcome the disadvantages that
remote Australia suffers in communications, health
and education.
partnership is prized.
We will transform our effectiveness as an organisation
through the creative use of information and
communication technologies to: enable us to do
business in new and different ways; significantly
increase the efficiency of all our business processes;
and facilitate the unhindered sharing of knowledge
across the Organisation.
We will increase CSIRO’s flexibility to invest in
key fields of science and emerging research areas,
ramping up to an additional $40 million a year
across the Organisation.
We will, in partnership with others, continue to
strive to raise awareness of the excitement and
importance of science to our nation, especially
amongst our youth.
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Management arrangements >>
To drive these strategic processes, CSIRO is adopting a new top management structure from July 2001.
CSIRO Executive Management Council and Executive Team
Executive Management Council
Agri–Food &
Fibre Group
Environment &
Natural Resources Group
IT, Manufacturing &
Services Group
Sustainable Minerals
& Energy Group
Mr Shaun Coffey
Dr Michael Eyles
Prof Richard Head
Livestock Industries
Food Science Australia
Health Sciences and Nutrition
Dr Glen Kile
Forestry and Forest Products
Dr Jim Peacock (chair)
Plant Industry
Dr Nan Bray
Marine Research
Dr Jim Cullen
Entomology
Dr Graham Harris
Land and Water
Dr Steve Morton
Sustainable Ecosystems
Dr Graeme Pearman (chair)
Atmospheric Research
Dr Brett Bateup
Dr Murray Cameron
Textile and Fibre Technology
Mathematical and Information Sciences
Dr Annabelle Duncan
Molecular Science
Prof Ron Ekers
Australia Telescope National Facility
Dr Warren King
Telecommunications and Industrial Physics
Mr Larry Little (chair)
Building, Construction and Engineering
Dr Ian Sare
Manufacturing Science and Technology
Dr Rod Hill
Dr Neil Phillips
Minerals
Exploration and Mining
Dr Adrian Williams (chair)
Petroleum Resources
Dr John Wright
Energy Technology
Mr Larry Little
Four Chairs of Business Groups
Executive Team
Dr Jim Peacock
Dr Graeme Pearman
Dr Adrian Williams
Dr Ted Cain
Corporate Secretary
Chair: Risk Management
Dr Geoff Garrett
Chief Executive
Dr Bruce Hobbs
DCE. Special Adviser: Strategic Investment Planning
Dr Ron Sandland
DCE. Director: e–CSIRO.
Dr Paul Wellings
DCE. Director: Business Development.
Chair: ICT Strategy Team
Chair: Biotech Strategy Team
Dr Vijoleta Braach–Maksvytis
Chair: CSIRO Science Forum
Mr John Read
Executive Director: Commercial & Finance
To be appointed
Director: Communications
Ms Jane Lowther (Acting)
Director: People Development
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4: Supporting the Science
Chapter 10
Corporate Governance
Economic dependency >>
CSIRO is economically dependent on the Commonwealth Government, requiring appropriation of money by Parliament
to carry out the majority of its activities.
Role of the CSIRO Board >>
The functions of the Board of CSIRO are contained in
the Science and Industry Research Act 1949 (‘SIR Act’)
and the Commonwealth Authorities and Companies
Act 1997 (‘CAC Act’). The SIR Act requires the Board to,
amongst other duties:
■
ensure the proper and efficient performance
of the functions of the Organisation;
■
determine the policy of the Organisation
with respect to any matter; and
■
give directions to the Chief Executive.
The Board meets formally six times each year for one
or two days. Additional meetings may be scheduled as
required. In accordance with the SIR Act, Board
members, with the exception of the Chief Executive, are
not involved in the day–to–day running of the
Organisation.
The Board has a formal agenda for each meeting and
receives regular papers from management on science,
financial and business performance, and a range of
specific issues relevant to the Organisation.
The CAC Act requires the Board to comply with certain
accountability and corporate governance principles,
including:
■
the maintenance of the Audit Committee;
■
specific financial and reporting provisions;
■
disclosure of Board Member’s personal interests;
and
■
provision of indemnities and indemnity insurance in
certain circumstances.
The Board has established a permanent Audit
Committee and establishes other committees from time
to time to assist in the execution of its duties and
allow detailed consideration of complex issues.
The Audit Committee operates under written terms of
reference (see separate section in this Chapter). All
matters considered and determined by the Audit
Committee are submitted to the Board for information
and, where appropriate, ratification.
All the CAC Act requirements are currently being met.
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Board membership >>
Audit Committee >>
Under the SIR Act, the CSIRO Board comprises the
full–time Chief Executive, a part–time Chairman and
up to eight other part–time members. All members,
including the Chief Executive, are appointed by the
Governor–General.
The Audit Committee, a formal sub–committee of the
Board, meets at least four times a year. As at 30 June
2001, the Audit Committee comprised Mr D P Mercer
(Chairman), Mr D C K Allen, Mr A E de N Rogers and
Ms E Alexander (external advisor).
Each member brings complementary skills and
experience to the Board. Details of the 2000-01 Board
members, their qualifications and terms of appointment
are shown in Chapter 3. The Financial Statements
contain details of remuneration of Board members
and their attendance at Board and Audit Committee
meetings.
The Chief Executive and the Deputy Chief Executive
responsible for Finance, together with the General
Manager of CSIRO’s Risk Assessment and Audit Unit,
and representatives of the Australian National Audit
Office, attend meetings at the invitation of the Audit
Committee Chairman.
Disclosure of interests >>
Sections 10E and 10F of the SIR Act require written
disclosure to the Minister of all direct or indirect
pecuniary interests in any business or in any body
corporate carrying on a business. Section 27F of the
CAC Act provides for the disclosure of material
personal interests in a matter that is being considered
by the Board and prohibits participation, deliberation
and decision making by any member on such matters,
unless so resolved by the Board or entitled by the
Minister: see s. 27J(3) CAC Act.
All of these requirements are currently being met.
Board and Board Committee
members’ remuneration >>
The Remuneration Tribunal determines part–time Board
members’ remuneration and allowances.
The Audit Committee’s purpose as detailed in the
Committee’s Terms of Reference is:
‘to assist Board members in fulfiling its responsibilities
relating to corporate governance (particularly section
32 of the CAC Act 1997), accounting and reporting
practices of the Organisation. The Committee oversees
the Organisation’s risk management policies, practices
and controls in relation to:
■
financial and commercial activities;
■
legislative and regulatory conformance; and
■
asset protection.
The Committee has unlimited access to both the
internal and external auditors and to senior
management.
Other committees >>
There is a Board Remuneration Sub–Committee, which
meets from time to time. Other sub–committees are
established to address specific issues but are not
permanent committees.
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Risk management program >>
The Board has the responsibility for ensuring an
appropriate risk management framework is in place
to identify and manage high and significant risks
to the Organisation.
To this extent, CSIRO undertakes a systematic program
of Organisation–wide and Divisional risk assessments
designed to identify, evaluate and prioritise risks and
develop risk mitigation strategies. The Risk Assessment
and Audit Unit facilitates this process with a three year
rotation program, utilising a methodology consistent
with the Australian Risk Management Standard
AS/NZS–4360.
The Audit Committee reviews the Organisational high
and significant risks and management’s risk mitigation
strategies through regular reports from the Risk
Assessment and Audit Unit.
A risk management policy, and associated guidelines,
was issued in July 1997.
It is the responsibility of the operational management
of CSIRO to develop and implement risk mitigation
strategies. In appropriate circumstances, insurance
is used as a method to transfer the financial impact
of risk.
Ethical standards >>
In September 1994 the CSIRO Board – endorsed a Code
of Conduct that applies to the Organisation’s Board,
management and staff. The Code provides a benchmark
against which conduct can be assessed to ensure that
the highest ethical standards are met.
Independent professional
advice >>
In the interests of their duties, Board members may
seek independent professional advice at the
Organisation’s expense. However, the Chairman’s
prior approval is required in all instances.
Internal control
The Board is responsible for ensuring an appropriate
internal control framework is in place and operating.
Through the Audit Committee it reviews management’s
policies, procedures framework and internal compliance.
External audit >>
Under the CAC Act the Auditor General is the external
auditor for CSIRO. The Audit Committee reviews the
Australian National Audit Office audit plan and meets
with the external auditor prior to recommending
to the Board that the financial statements be signed.
Internal audit >>
The Risk Assessment and Audit Unit provides an
independent review function in accordance with
a formal charter endorsed by the Audit Committee.
The Audit Committee reviews the annual Risk Assessment
and Internal Audit plan and receives regular reports on
progress against that plan.
Fraud control >>
In accordance with the Board – endorsed Fraud Control
Policy, the most recent fraud risk assessment was
undertaken during 1998 and a follow up was completed
during 2000. A comprehensive fraud risk assessment
has also been scheduled for 2001.
A detailed Fraud Control Plan operates in accordance
with Commonwealth Law Enforcement Board Guidelines.
The Audit Committee receives a regular six monthly
fraud report from the Fraud Control Officer.
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Chapter 11
Support Activities
Human Resources Management,
Occupational Health and Safety
and People Development
The year commenced with the implementation of
changes to CSIRO’s salary and classification system,
following staff endorsement of the proposals in July
2000. The proposals increased the emphasis on
teamwork, collaborative behaviour and leadership.
The performance appraisal system was also overhauled
and the new system implemented in April this year.
A new Enterprise Agreement was negotiated and will
take effect from July 2001. It contains a range of
initiatives to simplify processing and policy in relation
to conditions of employment.
A CSIRO Mentoring program was introduced in
December 2000, targeting middle managers with
potential to become future leaders. The program
involves selecting mentors for groups of up to 8 staff
for a period of one year. The mentors, who are
Divisional Chiefs, meet with their group every 2 months,
dealing with issues such as strategic future and
direction of CSIRO, commercialisation and globalisation
issues, relationships with internal and external
customers and building networks. There were 40 staff
in the first intake, based in Melbourne and Canberra.
An Employer of Choice project was established to
identify what is important to staff about working for
CSIRO and how CSIRO can enhance its policies and
practices to become an employer of choice.
CSIRO is developing a new Workplace Diversity Plan,
which is expected to be implemented by November
2001. A number of strategies have already been
identified to promote increased use of the family
friendly work arrangements already in place as well
as to identify new initiatives. The new Plan will also
introduce performance measures consistent with the
Commonwealth Disability Strategy, and establish
baseline data. Some projects that have already been
established (and will include examination of
diversity–related factors), include mentoring and
career development, staff surveys and reviews of
grievance procedures, employment policy and
practices, recruitment, induction policy and practice.
The Human Resource (HR) function is under review with
a view to implementing a more efficient structure for
delivery of HR services across the organisation and
streamlining and/or eliminating routine processing
activities.
Occupational health and safety
CSIRO’s Occupational Health, Safety and Environment
(OHS&E) function and structure is under review to
determine the best delivery model for the Organisation.
An OHS&E culture audit was completed during the year
to identify cultural factors in CSIRO that may inhibit the
further improvement of CSIRO’s OHS&E performance.
CSIRO’s Occupational Health and Safety Policy outlines
the principles for protecting all staff and others that
might be affected by the work of the organisation.
The Corporate Health and Safety Committee advises
on the development of OHS Policies and programs and
broad OHS priorities.
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The CSIRO OHS Management System has four main
stages: planning, implementation, measurement and
evaluation and review and improvement, comprising
elements to support continuous improvement. Business
Units report quarterly on a suite of OHS performance
indicators. Guidelines for Contractor Controls have been
issued, and OHS Improvement Plans, and OHS Internal
Audit Procedures are being developed.
CSIRO continued to improve its OHS performance
compared with the previous year. The Lost Time
Incident Frequency Rate, LTIFR, (5) and Medical
Treatment Frequency Rate, MTFR, (23) compares well
with previous years. This is evident by a 12 per cent
reduction in the number of compensation claims and
a 47 per cent reduction in time lost. This improved
performance is also reflected in a reduced workers’
compensation premium rate.
CSIRO’s OHS Performance for the past two years
Indicator
2000-01
1999–00
LTIFR
5
5
MTFR
23
25
No of incidents reported
935
835
No of compensation claims
270
308
Time lost – weeks
136
255
In response to recommendations by Comcare CSIRO
has developed plans to improve contractor safety and
certification of work, and reviewed local OHS induction
procedures.
People development
CSIRO recognises that significant investment in the
development and regular updating of the professional,
technical, leadership and management skills of its staff
is essential to maintain and extend its core
competence. Principal responsibility for providing
training and development of staff is held by Divisions.
Corporate programs designed to support Chiefs and
General Managers, prepare high potential staff for
future leadership roles and to assist other staff at
major, career transition points supplement the
initiatives of Divisions.
A comprehensive series of career development
discussions was held with Chiefs and General Managers.
Individual development needs and opportunities for
each were identified and the implementation phase has
commenced. Four Chiefs completed Executive Education
programs at leading overseas business schools during
the year.
The fifth Leadership Development Program, CSIRO’s
major succession planning activity, was completed.
Twenty–two participants, including four external
members, graduated in May 2001.
The Leadership in Innovation: Achievement Through
Teams joint venture with the Business/Higher Education
Round Table continued. Four programs were held with
a total of fifty–one participants from CSIRO, industry,
academia and public sector research agencies.
Three Project Leaders Programs with a total of sixty
participants were completed and a fourth course
(the eleventh in the series) commenced. The commercial
and business development component was redesigned
and strengthened. The program continues to have a
strong action learning component. Two additional
programs with a total of 35 participants were
conducted for specific Divisions.
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Two new programs commenced during the year.
The Research Business Program is aimed at developing
the commercial and business capability of research
and commercial staff. ‘Thriving on Complexity’ builds
collaboration, synergy and enhanced self–awareness
for staff embarking on complex, multi–divisional and
multi–disciplinary research ventures.
Environmental
Management >>
CSIRO is a member of The Leadership Consortium Inc,
a grouping of 20 major private and public sector
organisations which jointly offer leadership
development activities for high–potential managers.
During 2000-01, teams of CSIRO staff participated
in two Consortium programs with teams from other
member organisations.
CSIRO’s research is committed to achieving positive
environmental outcomes focusing on large–scale
integrated solutions to biodiversity issues at a regional
and national scale. CSIRO scientists work closely with
community, industry and government groups and
organisations. Specific research includes:
Development of the Team Leadership Program
continued. The Program provides core skills for all
team leaders and supervisors through short courses
and workshops in areas including people management,
commercialisation, legal obligations, financial
management, managing conflict, corporate governance
and conflict of interest.
A major, five year, consulting activity as part of CSIRO’s
Management Systems Strengthening contract with the
Indonesian Institute of Sciences (LIPI) was successfully
completed. A total of 50 LIPI staff participated in two
Leadership Development Programs. Additional
consulting work was undertaken for the New Zealand
Crown Research Institute for Geological and Nuclear
Sciences.
CSIRO complies with Commonwealth and State and
Territory environmental legislation, including the
Commonwealth Environmental Protection and
Biodiversity Conservation Act (EPBC) 1999.
■
Conserving and monitoring biodiversity. CSIRO
conducts research into effective solutions for
biodiversity conservation problems including the
clearing and modification of native vegetation,
and aquatic systems through land or water use,
alien species, pollution, and fire.
■
Ecosystem sustainability. CSIRO scientists, working
with farmers, farm organisations and government
agencies, are investigating the value of ecosystem
services and how to improve the profitability and
sustainability of farms.
■
Integrating biodiversity with resource management.
CSIRO is taking a systems approach to integrating
biodiversity with resource management decisions.
■
Managing environmental pests, weeds and
diseases. CSIRO aims to understand and develop
ecologically sound management systems for a
diversity of organisms that threaten Australia’s
biodiversity.
■
The functional role of biodiversity. CSIRO is
concerned with defining the relationship between
biodiversity, the functioning and maintenance
of terrestrial ecosystems.
■
Using biodiversity. CSIRO is focusing on expanding
the utilisation of biological assets for current or
future economic benefit through existing industries
and future ventures.
■
Knowledge and informatics. CSIRO scientists are
studying, classifying and documenting the nation’s
flora and fauna, managing national biological
collections and developing new technologies for
handling and delivering biodiversity information.
Peter O’Keefe
Tel (02) 6276 6418
Email peter.o’[email protected]
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Finance and audit systems >>
Finance
CSIRO appointed a Biotechnology Coordinator heading
a Biotechnology Strategy Unit in January 2001 to
provide a facilitating and coordinating role on
biotechnology issues. This includes coverage of
environmental impacts of biotechnology projects.
CSIRO has initiated a program of independent
environmental audits of all research and support
activities to identify environmental aspects, legal
obligations and improvement opportunities.
Commencing in 2001–02 CSIRO Business Units will be
required to report to the Executive on a suite of
environmental performance indicators including: rate
of energy use, environmental risk assessments, and
staff training on environmental management.
CSIRO is working closely with State and Commonwealth
Departments to review the CSIRO Heritage Register
to ensure the protection and management of these
properties.
The investment in planning and training for the
implementation of the New Tax System was beneficial.
During 2000-01 all monthly Business Activity Statements
were prepared directly from the Financial Management
Information System and lodged electronically to the
Australian Taxation Office within
the prescribed deadlines.
The Executive endorsed the implementation of a
‘Graphical User Interface’ version of the CSIRO’s
finance system UNIBIS.
Budgets for operating result, cash and capital
expenditure were set for each Business Unit consistent
with the Organisation’s strategic plan and research
priorities for each year of the new triennium.
In line with government policy CSIRO achieved in
excess of 90 per cent of all payments by electronic
funds transfer.
Bob Garrett
Dr Oliver Mayo
Tel (02) 6276 6423
Email [email protected]
Tel (02) 9840 2833
Email [email protected]
Risk Assessment and Audit
Energy Ser vices
The Corporate Energy Services Unit (CESU) provides
advice on the design of energy efficient building
services and air conditioning systems. It also monitors
and advises Divisions and users on energy consumption
and recommends methods to reduce CSIRO’s overall
energy usage in line with Government annual reduction
targets and when relevant, to provide staff awareness
and training programs.
Electricity usage at most sites can now be effectively
monitored by the installation of a metering system.
An initiative to analyse Energy and Water usage to
determine improvement strategies at major sites has
been commenced.
A key element in CSIRO’s corporate governance
framework is the Board and Senior Management’s
understanding of the risks facing the Organisation.
To assist this understanding the Risk Assessment and
Audit Unit provided the Board Audit Committee with a
summary of the high and significant risks at the CSIRO
organisational level. These risks had been identified
using the ongoing risk assessment process, which
follows the Australian/New Zealand standard on risk
management (AS/NZS 4360:1999). Management
provided an overview of the strategies it has in place
to mitigate each of these risks. The organisation’s risk
profile is revised every six months on an ongoing basis.
George Harley
Tel (02) 6276 6462
Email [email protected]
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A further important outcome is the provision of regular
risk assessment and audit reports to Senior
Management and the Board Audit Committee.
These reports cover risk identification and analysis,
and associated risk management strategies and action
plans. They also provide independent assurance that
internal controls are in place and operating effectively.
Peter O’Callaghan
Tel (03) 9662 7414
Email [email protected]
Information Technology
Services >>
During 2000 CSIRO worked with OASITO (The Office
of Asset Sales and Information Technology Outsourcing)
to reach an agreement on a suitable model for
Information Technology (IT) outsourcing that complied
with government policy and met the unique
requirements of the Organisation. The implementation
strategy for the initiative was significantly altered
following the independent Humphry review and CSIRO
was pleased that the Government recognised the
special needs of the research agencies to be highly
flexible and selective in their approach to outsourcing.
CSIRO continues to work within the Government’s
policy guidelines to support the industry development
components of the initiative and to find effective
ways in which IT can be outsourced where there
is a demonstrable benefit to CSIRO.
CSIRO entered into a Joint Collaboration with the Office
for Government Online (now the National Office for the
Information Economy) covering e–procurement
initiatives. One outcome of this collaboration was the
completion of an e–Procurement Scoping Study in early
2000. The study demonstrated a strong business case
for e–procurement, and provided a roadmap for action.
The version of the final report has been adopted by
NOIE as a ‘best practice’ document for Commonwealth
agencies.
Information Technology Services (ITS) undertook a
number of projects to utilise e–business tools within
the Organisation. Notable amongst these was the
completion of an electronic vote in July 2000 covering
aspects of the Enterprise Bargaining Agreement. This
was the second electronic vote conducted within the
Commonwealth and utilised a customised version of
the Department of Defence’s eVote system. This system
has now been adopted by the Australian Electoral
System following agreement between the Australian
Electoral Commission, Defence and CSIRO.
ITS also continues to explore creative solutions to
the ongoing problem of providing adequate network
bandwidth, at an affordable cost, to support the
research of CSIRO throughout the Organisation’s
geographically dispersed locations across Australia.
With the recent granting of a carrier licence to the
Australian Academic Research Network (AARNet Pty Ltd),
ITS is now able to pursue opportunities in areas such
as building metropolitan based fibre optic networks
and gaining access to carrier wholesale rates for more
cost–effective communications services for the
Organisation.
ITS continues to develop and roll out new leading edge
technologies that both improve the functionality while
reducing costs of voice, video and data communications
to the organisation. IP (Internet Protocol) Telephony is
a good example of this, which builds on our successful
implementation of Voice over Internet Protocol (VoIP)
to connect the telephone handset on the desk ‘directly
to the internet’, thus avoiding the need for what is
fast becoming expensive legacy infrastructure such
as PABXs. These new ‘PABXless’ IP telephones are
currently being installed at CSIRO’s new site at Bentley
Technology Park, Western Australia, and provide a
cost–effective voice communications system, whilst
enabling the true integration of voice, video and
data into one homogeneous intelligent environment.
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Communication and
Education >>
National Awareness
In March 2001, CSIRO relaunched its intranet. The
redevelopment provides a more user–friendly experience
and significantly improves accessibility to the wealth
of information available to CSIRO staff. Through this
development, the intranet has become an essential
tool for sharing knowledge and facilitating
communication within CSIRO rather than a large
repository for corporate documents.
CSIRO has made significant progress in the
development of the largest locally stored science
library in Australia. Following the success of the initial
implementation of the Elsevier journal collection, the
last year has seen the addition of electronic content
from Blackwell Science, CSIRO Publishing, and Kluwer.
The e–journals collection now holds approximately
3 000 journal titles and approximately 2 million journal
articles. Usage data demonstrate the positive uptake
of electronic journals by CSIRO scientists.
In July 2000 the Commercial Information System (CIS)
was released. This module of the Project Support
System (PSS) is a standard management tool for each
Division’s Customer, Contacts, Prospects, Proposal
and Agreement information and provides reporting
capabilities for the Organisation’s commercial
information, and facilitates the sharing of basic
Customer, Contact and Contract information between
Divisions.
Jonathan Potter
Tel (02) 6276 6276
Email [email protected]
Service to politicians. Science Briefings have been
extended to most State Parliaments where they are
being well received. Nine National Science Briefings
have been held at Parliament House in Canberra and
12 State Briefings: 3 in Victoria, 2 in New South Wales,
1 in Western Australia, 4 in South Australia and 2 in
Tasmania. The Parliamentary Information Initiative,
aimed at providing Federal politicians with regular
information about CSIRO research, tailored to their
own special requirements, has been evaluated and
set up to operate over the triennium.
Media. Outcomes of public awareness activities have
been measured by media analysis. 328 media releases
went out during the financial year. Analysis of print
media during 2000 showed that CSIRO continues to
receive highly favourable print coverage in volume and
quality. National Awareness has established an email
database containing over 350 journalists, media
organisations, research institutions and technical
publications from around the world. Selected media
stories are sent to these contacts raising the profile
and awareness of CSIRO and Australian science
worldwide. The database has been divided into
categories to cater for the different interests of each
contact.
Scinema. National Awareness organised Australia’s first
international festival of science film and multimedia,
which was held in Canberra in May 2001 and coincided
with National Science Week. It was a competitive
international festival and drew over 140 film and
multimedia entries from 14 countries. With a total of
88 films screening at Centre Cinema and CSIRO
Discovery Centre, in its first year Scinema became one
of the world’s largest film festivals. National Awareness
has had requests for Scinema to tour to three states in
late 2001.
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metis II. metis II was the second exhibition project to
facilitate cross–disciplinary communication between the
visual arts and sciences. The theme for May 2001 was
waste and ecological degradation. It was a series of
13 exhibition projects involving over 50 artists and was
exhibited across major art and science institutions in
the Australian Capital Territory. metis is a biennial
exhibition and has had requests to expand in 2003.
Julian Cribb
Tel (02) 6276 6244
Email [email protected]
Scientriffic magazine continued to increase its
circulation after two years in production with
subscriptions increasing to over 7 500. Sponsors
continue to support the magazine. There are over
10 000 individual members of Double Helix with its
magazine, The Helix, having a circulation of 16 000.
CSIRO Science Education Centres (CSIROSECs) provided
educational, interactive sessions for 170 000 students
both in the nine Centres and across Australia through
their Lab on Legs. CSIROSECs are located in every
capital city plus Townsville.
Ross Kingsland
Education
Tel (02) 6276 6643
Email [email protected]
CSIRO Education operates a range of projects to raise
awareness of the value of scientific research and to
encourage students to take up science careers.
CSIRO Enquiries
Major sponsorship was gained for a number of projects
to enable specific projects to continue and to launch
a new initiative. Members Australia Credit Union is
funding a new project, Science by Email, which was
launched in May. It will offer an e–newsletter to
members of CSIRO’s Double Helix Science Club and
Scientriffic subscribers. The project will provide the
latest science information, experiments to try at home
and web chats with scientists on topics of interest.
Members Australia has close links with CSIRO.
Alcoa World Alumina Australia has offered to provide
generous support for the CREST project. CREST allows
school students to undertake their own scientific
research projects. It supports teachers in providing this
experience to their students and is contributing to an
important change in science teaching in Australia.
The Student Research Scheme has been supported
in 2001 by three major partners – The Ian Potter
Foundation, University of NSW and University of WA.
Additional support is being provided by the Australian
National University, James Cook University and the
University of Tasmania.
CSIRO Enquiries’ role is to provide a responsive
information service on behalf of all CSIRO divisions
and units, dealing with enquiries received from people
in Australian and international communities.
The unit handled over 37 000 calls in 2000-01.
Enquiries were received from the general public
(68.5 per cent), students (13.1 per cent), industry
(12.3 per cent), government (4.5 per cent) and the
media (1.6 per cent).
CSIRO Enquiries utilises up–to–date telecommunications
and IT technologies to offer a personal service,
ensuring that every enquirer interacts with an
experienced, science–trained professional. Enquirers
have easy access to the service via a national
telephone number 1300 363 400 at local call costs,
an email service to [email protected] as well as fax
and mail.
Rae Robinson
Tel (03) 9545 2177
Email [email protected]
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Property and Security >>
Property
Security
CSIRO’s property assets are being efficiently and
effectively managed, using principles and strategies
contained in the CSIRO Property Management Plan
2000. This is being upgraded into a comprehensive
Estate Management Plan 2000–05. Rationalisation and
consolidation of resources continues in line with
research requirements and budgetary parameters.
The Internal Leasing Scheme provides the most
appropriate means for generating funds for allocation
to the maintenance and replacement of CSIRO’s highly
specialised assets.
The Organisation’s Security Policy was issued in
February 1996 and is currently being reviewed in light
of the Government’s promulgation of the
Commonwealth Protective Security Manual 2001. A
revised Corporate Security Plan will be developed as
a result of the new policies and regulations contained
in the manual.
A Government Property Review determined that six
CSIRO properties were to be sold and leased back.
The Government has agreed that CSIRO will receive
appropriation funding for additional sale and ongoing
rental costs as part of this exercise. Riverside Corporate
Park, the centre of CSIRO research in New South Wales,
was sold in June 2001 with a 20–year plus lease back
provision. Tenders for three Australian Capital Territory
properties closed in early July 2001.
The Capital Works program continues to facilitate the
refurbishment and replacement of Research Facilities
across the portfolio, with one of the two–major State
funded projects in Queensland completed and the other
in Western Australia nearing completion. Work on
developing the major research facilities at St Lucia,
Queensland and North Ryde, New South Wales is in
mid–term.
The security review program has been ongoing and will
continue through 2001 and 2002. Even though the new
standards will place additional demands upon CSIRO
the Organisation is well placed to meet the
Government’s requirements and demonstrate
compliance with the new standards.
George Harley
Tel (02) 6276 6462
Email [email protected]
Strategic Planning and
Evaluation >>
CSIRO’s comprehensive process for identifying triennial
research priorities culminated in the publication in
July 2001 of the CSIRO Strategic Plan 2000-01 to
2002–03. The Strategic Plan sets out CSIRO’s planned
investment in specified outcomes and outputs across
22 Sectors of industry and the environment. It is
supported by an annual CSIRO Operational Plan
that details the planned activities and achievements
of individual CSIRO Divisions and corporate units in
support of the Strategic Plan.
Considerable progress has been made toward the
development of a comprehensive set of quantitative
and qualitative measures to assist in the management
of CSIRO’s performance and to enhance external
accountability and reporting. One key area of focus has
been the development of a process of ‘customer value
analysis and management’. This included the pilot
testing of a new customer value survey and a two–day
training course for senior CSIRO officers involved in
managing key and major accounts. A second pilot
survey – to test a new approach to the gathering of
data on staff satisfaction – was also conducted during
the year.
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Legal ser vices
Coordination support was provided for 17 Strategic Task
Groups convened by the new Chief Executive to provide
input to the CSIRO Strategic Action Plan 2001–02
– A New CSIRO for a New Century – developed by the
Executive Team in May 2001. The Strategic Action Plan
outlines a bold approach to grow CSIRO by 50 per cent
over the next five years with an increasingly strong
‘service from science’ orientation, greater focussing
of resources, an emphasis on substantially increased
partnering, and the development of strategies to
reinvigorate CSIRO’s commercialisation and business
development processes.
CSIRO’s preparation for the next triennial planning
round also commenced during the year with external
and internal consultations to help articulate the high
level priority issues and research goals for Australia.
This process has now come together with the emerging
national approach to priority setting led by the Chief
Scientist arising from the Government’s report Backing
Australia’s Ability. Together with the ongoing Sector
Advisory Committee processes, these overarching
national considerations will help shape CSIRO’s
planned research portfolio and associated triennial
funding negotiations with government for the
2003–04 to 2005–06 triennium.
CSIRO’s Legal Group currently comprises thirteen
corporate and divisional lawyers. At corporate level,
principal legal activities include: provision of corporate
governance advice and services to the Executive Team
to assist in the effective management of CSIRO and the
Organisation’s compliance with its legal obligations,
including relevant Federal, State and Territory
legislation; provision of legal advice and services in
support of commercial arrangements in which CSIRO is
engaged (such as new business enterprise creation,
joint ventures, research contracts, licensing
arrangements and collaborations); and provision of
litigation, arbitration, mediation, negotiation and
reporting advice and services to assist CSIRO in the
management of disputes and compliance with CSIRO’s
statutory reporting and insurance obligations.
CSIRO Legal also helps to provide legal training and
information resources, such as the development of
CSIRO commercial and legal intranet sites (providing
access to relevant legislation, tools for
commercialisation and standard form agreements)
and preparation of training modules relating to general
legal issues and conflicts of interest and duty.
Intellectual property ser vices
Dr Andrew Pik
Tel (02) 6276 6034
Email [email protected]
Legal and Intellectual
Property >>
Legal and intellectual property services are an
increasingly important component in CSIRO’s technology
transfer, commercial and other activities carried out in
pursuit of the Organisation’s statutory functions.
Since 1993 CSIRO has used an external contractor,
Intellectual Property Management Pty Ltd (IPM), to
provide a range of services to support CSIRO in its
handling of IP matters. IPM currently maintains a
database of all CSIRO’s registrable intellectual property
and provides professional patent attorney advice. In
June 2001, a consultative process for the possible
re–tender for the supply of IP services to CSIRO was
commenced. Intellectual property firms were invited
to consult with CSIRO about the kinds of IP support
services now available from the private sector and how
CSIRO might best access such services in order to
expand and optimise the value of, and returns from,
its IP portfolio.
4 : S u p p o r t i n g t h e S c i e n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[105]
Major litigation
Litigation between CSIRO and Charter Pacific
Corporation Ltd (CPC) was settled in September 2000
and the parties agreed to sever all commercial relations
between them. The settlement terminated all court
proceedings and also terminated CPC’s rights to share
in any future Exelgram commercialisation revenue.
CSIRO and the Commonwealth are defendants in
litigation relating to the escape of Rabbit Calicivirus
Disease from Wardang Island, South Australia in 1995.
The litigation remains listed in the major torts list of
the Supreme Court of Victoria. CSIRO and the
Commonwealth have settled with a number of
claimants; negotiations continue in relation to
outstanding claims.
Terry Healy
Tel (03) 9662 7421
Email [email protected]
4 : S u p p o r t i n g t h e S c i e n c e
c s i r o a n n u a l r e p o r t 0 0 – 0 1
[106]
5: Developments since 30
June 2001
Developments since 30 June 2001 >>
The Commonwealth Authorities and Companies Act 1997 requires CSIRO to report developments since the end of the
financial year, giving particulars of any matter or circumstance that has arisen and has significantly affected or may
significantly affect:
(i)
the authority’s operations in future financial years; or
(ii) the results of those operations in future years; or
(iii) the authority’s state of affairs in future financial years.
We report the following significant developments.
Mr John Read was appointed Executive Director,
Commercial and Finance.
CSIRO and New Zealand’s Crop and Food Research have
formed a research alliance called Ausgrainz. The
trans–Tasman agreement between the public research
organisations will expand the two countries’ plant
breeding efforts by widening access to international
germplasm and building the scientific research base.
c s i r o
5 :
a n n u a l
A Memorandum of Understanding was signed in August
between CSIRO and Central Queensland University
(CQU) which will co–locate CQU Plant Sciences Group,
led by Professor David Midmore, to the CSIRO’s J M
Rendel Laboratory. This will utilise space not required
by the CSIRO whilst still permitting the planned and
previously announced expansion in the numbers of
Division of Livestock Industry scientists at the Rendel
Laboratory. CSIRO has undertaken to provide access
for CQU to the facility for 10 years.
D e v e l o p m e n t s
r e p o r t 0 0 – 0 1
[107]
Section 6
Financial Statements
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[108]
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[109]
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[110]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
STATEMENT BY BOARD MEMBERS
In our opinion, the attached financial statements give a true and fair view of the matters required by
Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000/2001) Orders
made under the Commonwealth Authorities and Companies Act 1997 for the year ended 30 June 2001.
Signed on the 3rd day of September 2001 in accordance with a resolution of the Board Members.
D Charles K Allen, AO
Geoff G Garrett
Chairman of the Board
Chief Executive and
Board Member
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[111]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
STATEMENT OF FINANCIAL PERFORMANCE
For the year ended 30 June 2001
Notes
2001
2000
$’000
$’000
Revenues from ordinary activities
Revenues from Government
5.1
611 042
617 093
Sales of goods and services
5.2
250 453
250 417
Interest
5.3
6 444
6 251
Dividends
5.4
—
138
Net gains from sales of assets
5.5
10 238
9 363
Net foreign exchange gains
5.6
59
53
Other
5.7
7 067
11 635
885 303
894 950
Total revenues from ordinary activities
Expenses from ordinary activities
Employees
6.1
445 269
437 902
Suppliers
6.2
259 821
255 246
Depreciation and amortisation
6.3
77 703
77 310
Write–down of assets
6.4
( 430 )
1 387
Other
6.5
1 240
2 950
783 603
774 795
101 700
120 155
(1 062 )
( 535 )
361
268
Total expenses from ordinary activities
Borrowing costs expense
6.6
Share of net operating surplus of joint ventures accounted
for using the equity method
21(e)
Net operating surplus from ordinary activities
19
100 999
119 888
Net surplus attributable to the Commonwealth Government
19
100 999
119 888
Net credit to asset revaluation reserve
19
46 122
–
Total valuation adjustments recognised directly in equity
19
46 122
–
147 121
119 888
Total changes in equity other than those resulting from
transactions with owners as owners
The above statement should be read in conjunction with the accompan ying notes.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[112]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
STATEMENT OF FINANCIAL POSITION
As at 30 June 2001
Notes
2001
2000
$’000
$’000
54 624
ASSETS
Financial Assets
Cash
7
109 713
Receivables
8
47 447
45 401
Investments
9
28 789
90 774
185 949
190 799
Total financial assets
Non–Financial Assets
Land and buildings
10
822 431
835 433
Plant and equipment
11
233 539
241 372
Inventories
12
896
745
Intangibles
13
4 994
6 325
Other
14
21 344
19 276
Total non–financial assets
1 083 204
1 103 151
Total assets
1 269 153
1 293 950
43 234
20 397
LIABILITIES
Interest Bearing Liabilities
Leases
15
Deposits – trust monies
8 477
9 464
Total interest bearing liabilities
51 711
29 861
Provisions
Capital use charge
1.16
Employees
16
Total provisions
527
—
170 048
154 606
170 575
154 606
Payables
Suppliers
17
23 911
28 299
Other
18
87 494
128 316
Total payables
111 405
156 615
Total liabilities
333 691
341 082
397 824
EQUITY
Reserves
19
443 946
Accumulated surpluses
19
491 516
555 044
935 462
952 868
1 269 153
1 293 950
Total equity
Total liabilities and equity
Current assets
292 609
153 133
Non–current assets
976 544
1 140 817
Current liabilities
198 400
173 505
Non–current liabilities
135 291
167 577
The above statement should be read in conjunction with the accompan ying notes.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[113]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
STATEMENT OF CASH FLOWS
For the year ended 30 June 2001
Notes
2001
2000
$’000
$’000
OPERATING ACTIVITIES
Cash received
Appropriations
5.1
Sales of goods and services
Dividends
Interest
GST recovered from Australian Taxation Office
611 042
617 093
282 151
240 397
—
138
6 444
6 251
8 593
—
908 230
863 879
Employees
429 851
418 539
Suppliers
288 187
261 280
Cash used
Borrowing
Other
Net cash provided/(used) by operating activities
20
1 062
535
987
6 831
720 087
687 185
188 143
176 694
INVESTING ACTIVITIES
Cash received
Proceeds from sale of property, plant and equipment
Proceeds from sale of equity investment
110 539
17 124
3
10 596
110 542
27 720
101 733
66 467
Cash used
Purchase of property, plant and equipment
Purchase of equity investment
Net cash provided/(used) by investing activities
551
3 416
102 284
69 883
8 258
(42 163 )
22 837
593
FINANCING ACTIVITIES
Cash received
Proceeds from debt
Cash used
Repayment of debt
Capital use paid to Government
19
62 731
—
104 409
112 804
30 000
Revenue measure – paid to Government
19
—
Proceeds from property sales – paid to Government
19
59 591
—
226 731
142 804
(203 894 )
(142 211 )
Net increase/(decrease) in cash held
(7 493 )
(7 680 )
Cash at 1 July
144 214
151 894
136 721
144 214
Net cash provided/(used) by financing activities
Cash at 30 June
20
The above statement should be read in conjunction with the accompan ying notes.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[114]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
SCHEDULE OF COMMITMENTS
As at 30 June 2001
2001
2000
$’000
$’000
46 820
54 974
By Type
Commitments payable
Capital commitments
Land and buildings
Plant and equipment
Total capital commitments
3 342
2 187
50 162
57 161
Other commitments
Operating leases
329 524
18 439
Research and development commitments
284 069
275 256
Other commitments
8 583
12 054
Total other commitments
622 176
305 749
Total commitments payable
672 338
362 910
246 670
230 681
Commitments receivable
Research and development commitments
Other receivables
6 490
4 231
Total commitments receivable
253 160
234 912
Net commitments payable
419 178
127 998
By Maturity
All net commitments
One year or less
79 657
58 736
From one to five years
91 843
63 408
Over five years
247 678
5 854
Net commitments payable
419 178
127 998
Operating lease commitments
One year or less
19 198
8 669
58 228
8 397
Over five years
252 098
1 373
Total net operating lease commitments
329 524
18 439
From one to five years
The above schedule should be read in conjunction with the accompan ying notes.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[115]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
SCHEDULE OF CONTINGENCIES
As at 30 June 2001
Contingent losses
Bank guarantees
Estimated legal claims arising from employment, motor vehicle
accidents and contractual disputes. In addition, CSIRO had a
number of other claims where the estimated amounts of
eventual payments, if any, could not be quantified. CSIRO
has denied liability and is defending the claims.
Contingent gains
Legal claims expected to succeed from recovery of debts.
Net contingencies
2001
2000
$’000
$’000
109
—
215
1 800
324
1 800
( 190 )
( 214 )
134
1 586
SCHEDULE OF UNQUANTIFIABLE CONTINGENCIES
As at 30 June 2001
Preliminary investigation by the CSIRO Environmental Management Committee identifies a range of
potential environmental risks associated with storage of low–level radioactive waste at Woomera, South
Australia, and low–level contamination of a number of sites with asbestos or other hazardous substances.
The costs associated with the clean up of these sites have not been quantified.
The above schedules should be read in conjunction with the accompan ying notes.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[116]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS
For the year ended 30 June 2001
Description
Note Number
Page Number
Summary of significant accounting policies
1
118-123
Economic dependency
2
123
Segment reporting
3
123
Reporting by outcomes
4
124
Operating revenues
5
125
Operating expenses
6
126
Cash
7
126
Receivables
8
127
Investments
9
127-129
Land and buildings
10
129
Plant and equipment
11
130-132
Inventories held for resale
12
133
Intangibles
13
133
Other non–financial assets
14
133
Leases
15
133
Employees
16
134
Suppliers
17
134
Other liabilities
18
134
Equity – movement summary
19
134-135
Statement of cash flows reconciliation
20
135
Joint ventures
21
136-138
Related entities
22
139
Research and development syndicates
23
139
Resources made available to CSIRO and
not included in the Statement of Financial Position
24
139
Monies held in trust
25
140-141
Remuneration of auditors
26
141
Collections
27
141
Remuneration of Board Members
28
142
Meetings of Board Members and Audit Committee
29
142
Remuneration of Officers
30
143
Related party disclosures
31
143-144
Financial instruments
32
145-149
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[117]
C O M M O N W E A LT H S C I E N T I F I C A N D I N D U S T R I A L
R E S E A R C H O R G A N I S AT I O N
NOTES TO AND FORMING PART OF THE FINANCIAL
STATEMENTS
For the year ended 30 June 2001
Note 1
1.1
Summary of significant accounting policies
Basis of Accounting
The financial statements are required by clause 1(b) of Schedule 1 to the Commonwealth Authorities
and Companies Act 1997 and are a general purpose financial report.
The statements are prepared in accordance with:
• Schedule 1 of the Commonwealth Authorities and Companies (Financial Statements 2000/2001)
Orders made by the Finance Minister;
•
Australian Accounting Standards and Accounting Interpretations issued by Australian Accounting
Standards Boards;
•
other authoritative pronouncements of the Boards; and
•
the Consensus Views of the Urgent Issues Group.
In addition, the statements are prepared having regard to:
• Statements of Accounting Concepts;
•
the Explanatory Notes to Schedule 1 of the Orders issued by the Department of Finance
and Administration; and
•
Guideline Notes issued by that Department.
The financial statements are prepared on an accrual basis and are in accordance with the historical cost
convention, except for certain assets which, as noted, are at valuation. Except where stated, no allowance
is made for the effect of changing prices on the results or on the financial position.
Assets and liabilities are recognised in the Statements of Financial Position when and only when
it is probable that future economic benefits will flow and the amounts of the assets or liabilities
can be reliably measured. Assets and liabilities arising under agreements equally proportionately
unperformed are however not recognised unless required by an Accounting Standard. Liabilities and
assets, which are unrecognised, are reported in the Schedule of Commitments and the Schedule of
Contingencies.
Revenues and expenses are recognised in the Statements of Financial Performance when and only
when the flow or consumption or loss of economic benefits has occurred and can be reliably
measured.
1.2
Consolidation
CSIRO acquired five R&D Syndication companies listed in Note 9 when investors in the Syndications
exercised their put options under the agreements. These companies are in the process of being wound
up by members’ voluntary liquidation in 2001/2002. In addition, during the year CSIRO has either acquired
or incorporated four subsidiary companies listed in Note 9 as vehicles for the commercialisation of its
intellectual properties.
These R&D Syndicates and new R&D subsidiaries do not have a material effect on CSIRO’s
financial statements and as a result they have not been consolidated.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[118]
1.3
Revenue Recognition
Parliamentary appropriation revenue is recognised at the time CSIRO becomes entitled to receive
the revenue. Revenues from Government are for CSIRO’s core operating activities.
Revenue from contract research and development activities is recognised by reference to the stage
of completion of contracts. The stage of completion is determined according to costs incurred to date
after taking into account the total contract values and the estimated total costs. The balances of contract
research and development activities in progress are accounted as either contract research work in progress
(Note 14) or contract research revenue received in advance (Note 18) in the Statement of Financial Position.
Where necessary, a surplus or deficit is recognised progressively for each contract research and
development activity.
Revenue from sale of goods and other services is recognised upon delivery of goods and services
performed.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable
to the financial assets.
Licensing fees and royalties from the sale of products or technologies developed under agreements, are
brought to account when received. While this basis of accounting constitutes a departure from an accrual
basis, the effect is not material to the financial statements.
Revenue from disposal of non–current assets is recognised when control of the asset has passed to the
buyer.
1.4
Resources Received Free of Charge
Services received free of charge are recognised in the Statement of Financial Performance as revenue when
and only when a fair value can be reliably determined and the services would have been purchased if they
had not been donated. Use of those resources is recognised as an expense.
Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair
value as revenue and an asset when CSIRO gains control over the contributed asset and the asset qualifies
for recognition.
1.5
Research and Development Expenditure and Intellectual Property
All research and development costs, including costs associated with protecting intellectual property
(eg patents and trademarks) are expensed as incurred, except where benefits are expected, beyond
any reasonable doubt, to equal or exceed those costs. The capitalisation threshold limit for intellectual
property is $250 000. As at 30 June 2001 no research and development costs or intellectual property
have been capitalised.
1.6
Property, Plant and Equipment
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial
Position, except for purchases costing less than $3 000, which are expensed in the year of acquisition.
Revaluations
Property, plant and equipment are revalued in accordance with the “deprival” method of valuation every
three years, so that no asset has a value greater than three years old.
Land, which will continue to be used for research activity, was valued by CSIRO’s registered valuer as
at 30 June 1999 at “existing use value”. Existing use contemplates the continued use of the asset for the
same application as at the date of valuation, having regard to the asset’s capacity to continue contributing
to the value of CSIRO but ignoring alternative uses.
Buildings and leasehold improvements, which will continue to be used for research activities, were valued
as at 30 June 1999 at depreciated replacement cost using current building prices to arrive at current gross
replacement cost less accumulated depreciation having regard to the age and condition.
Building valuations include plant, fixtures and fittings, which form an integral part of the building.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[119]
Land and buildings designated for possible sale were valued at market value as at 1 July 2000 by
registered independent valuers. The net revaluation increase of $46 122 600 was credited to the Asset
Revaluation Reserve (Note 19).
Plant and equipment with historical costs of $75 000 and over was revalued by the Australian Valuation
Office as at 1 July 1998 using the “deprival” method. Other plant and equipment under that $75 000
threshold was valued in house at their depreciated replacement cost. Any assets, which would not be
replaced, or are surplus to requirements, were valued at net realisable value.
Property, plant and equipment which are purchased from contract research funds and where the control
and subsequent sale proceeds are refunded to the contributors under the terms of the agreements, are
expensed during the year of purchase. Separate records for these assets are maintained and disclosed
in Note 24.
Depreciation and Amortisation
Depreciation is calculated on a straight line basis so as to write off the cost or revalued amount of each
item of building, plant and equipment over its expected useful life. Leasehold improvements are amortised
on a straight–line basis over the lesser of the estimated useful life of the improvement or the unexpired
period of the lease.
Depreciation/amortisation rates (ie useful lives) and methods are reviewed at each balance date and
necessary adjustments are recognised in the current, or current and future reporting periods, as
appropriate.
Depreciation and amortisation rates applying to each class of depreciable assets are as follows:
•
Building on freehold land
•
Leasehold improvements
40 to 50 years
Lease term
•
Passenger vehicles
5 years
•
Agricultural and transport equipment
3 to 15 years
•
Computing equipment
2 to 5 years
•
Scientific equipment
5 to 25 years
•
Furniture and office equipment
4 to 15 years
•
Workshop equipment
20 years
•
Research Vessels
25 years
•
Australia Telescope
12 to 45 years
The aggregate amount of depreciation and amortisation for the year is disclosed in Note 6.3.
Recoverable amount test
The carrying amounts of intangibles, property, plant and equipment assets have been reviewed to
determine whether they are in excess of their recoverable amounts. In assessing recoverable amounts,
the relevant cash flows, including the expected cash inflows from future external revenue and
appropriations by the Commonwealth Government, are considered and not discounted to their present
value. No write–down to recoverable amount was made as a result of the review.
1.7
Intangibles
Internally developed and externally acquired computer software with an estimated cost of more than
$250 000 threshold had been valued by the Australian Valuation Office as at 30 June 2000 using the
“deprival” method (Note 13). The effect of this change in accounting policy increased last years
operating surplus by $6.3 million (Note 5.7). Computer software is amortised on a straight–line basis
over its remaining useful life of between 1 to 10 years.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[120]
1.8
Investments
Australian Accounting Standard, AAS38 on “Valuation of Non–Current Assets” allows a choice to either
adopt the cost basis or the fair value basis in the valuation of its investments. CSIRO has elected the early
adoption of AAS38 as at 30 June 2001 and valued its investments at cost, which is not in excess of their
recoverable amounts.
CSIRO fully provides for diminution in value of its investment in unlisted R&D associate and subsidiary
companies due to the inherent business risk of these companies involved in R&D and high technology
industries (Note 9).
CSIRO has adopted the cost basis to account for its interest in the R&D associate companies. They are
not material and are held with the intent for sale in the near future, as a result the equity method of
accounting is not adopted.
1.9
Leases
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee
substantially all the risks and benefits incidental to ownership of leased assets, and operating leases,
under which the lessor effectively retains all such risks and benefits.
Where a non–current asset is acquired by means of a finance lease, the asset is capitalised at the present
value of minimum lease payments at the inception of the lease and a liability for lease payments
recognised at the same amount. Lease payments are allocated between the principal component and the
interest expense. Leased assets are amortised over the period of the lease.
Operating lease payments are charged to the Statement of Financial Performance on a basis which is
representative of the pattern of benefits derived from the leased assets.
1.10
Employee Entitlements
Leave
The liability for employee entitlements includes provisions for annual leave, long service leave, severance
pay and redundancy. No provision has been made for sick leave as all sick leave is non–vesting and the
average sick leave taken by employees is less than the annual entitlement for sick leave.
The liability for annual leave reflects the value of total annual leave entitlements of all employees
at 30 June 2001 and is recognised at its nominal value.
The liability for long service leave is recognised and measured at the present value of the estimated future
cash flows to be made in respect of all employees at 30 June 2001. In determining the present value of the
liability, attrition rates and pay increases through promotion and inflation have been taken into account.
Provision for severance pay in respect of term staff was recognised at its nominal value.
Separation, redundancy and relocation
Provision is made for separation and redundancy payments in circumstances where positions have either
been identified as excess to requirements as a result of restructuring and relocation of Divisions and
a reliable estimate of the amount payable can be determined.
Superannuation
CSIRO discharges its liability for employees’ superannuation by contributing to the Commonwealth
Superannuation Scheme (CSS) and the Public Sector Superannuation Scheme (PSS), which provide
retirement, death and disability benefits to employees. Contributions to the schemes are at rates calculated
to cover existing and emerging obligations. Current contribution rates are 20% of salary (CSS) and 10.2%
of salary (PSS). These contribution rates are determined by regular actuarial review. In addition a 3%
Employer Superannuation Productivity Benefit is contributed for CSS and PSS members. For term
employees who have chosen not to join CSS or PSS, a 8% employer productivity superannuation benefit
is contributed to Australian Government Employees Superannuation Trust (AGEST) or other eligible
superannuation funds.
6 : F i n a n c i a l s t a t e m e n t s
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[121]
1.11
Workers’ Compensation
CSIRO’s workers’ compensation liability is covered by the premium paid to the Commission for the Safety,
Rehabilitation and Compensation of Commonwealth Employees (COMCARE) and no additional provision
for liability is required.
1.12
Insurance
As part of its risk management strategy, CSIRO has insured for risks through the Commonwealth
Government’s insurable risk managed fund Comcover, for a range of risks including industrial special risks,
professional indemnity, public and product liability, directors and officers liability/company reimbursement,
travel and motor vehicles. The insurance cover is designed to protect CSIRO from catastrophic losses.
There is a deductible on each of the above insurances, the largest being $650 000.
1.13
Cash
For the purpose of the Statement of Cash Flows, cash includes cash at bank and on hand, deposits
at call, trust monies and R&D Syndication deposits under contract. They are readily convertible to cash.
1.14
Inventories
Inventories held represent books, CD–ROMs and videos. They are held for resale and valued at the lower
of cost and net realisable value.
1.15
Consumable Stores
Stocks of consumable stores, which are not held for resale, are expensed during the year of purchase.
These stores mainly consist of fuel and lubricants, chemical supplies, maintenance materials and stationery.
The total value is not considered material in terms of total expenditure or total assets.
1.16
Capital Usage Charge
A capital usage charge of 12% is imposed by the Commonwealth Government on the net assets of CSIRO
at year–end. The charge is reduced to take account of asset gifts and revaluation increments during the
financial year.
1.17
Bad and Doubtful Debts
Bad debts are written off in the year in which they are identified. A provision is raised for doubtful debts
based on a review of all receivables outstanding for more than 90 days at year–end and any other specific
debt where the collection of the full amount is considered doubtful.
1.18
Foreign Currency Transactions
Transactions denominated in a foreign currency are converted at the exchange rate prevailing at the date
of the transaction. Foreign currency receivables and payables are also translated at the exchange rates
prevailing at balance date. Associated currency gains and losses are brought to account in the Statement
of Financial Performance.
Hedging is undertaken for specific exposures in order to avoid or minimise possible adverse financial
effects of movements in exchange rates. Where a purchase or sale is specifically hedged, exchange
differences arising up to the date of purchase or sale, and costs, premiums and discounts relative
to the hedging transaction, are included with the measurement of purchase or sale.
1.19
Taxation
In accordance with section 53 of the Science and Industry Research Act, CSIRO is exempt from all forms
of Australian taxation except fringe benefits tax and the goods and services tax. CSIRO pays applicable
taxes in overseas countries.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[122]
1.20
Rounding
Amounts are rounded to the nearest $1 000 except in relation to:
•
•
•
•
1.21
remuneration of Board Members;
remuneration of Officers;
remuneration of auditors; and
investment at cost in companies which are less than $1 000 (Note 9(b)).
Joint Ventures
CSIRO has interest in a number of joint venture operations and entities. Details of the joint venture
operations and entities are disclosed in Note 21.
1.22
Financial Instruments
Accounting policies for financial instruments are stated in Note 32.
1.23
Contingencies
A material contingency, which is quantified and not recognised as an expense or revenue is disclosed
in the Schedule of Contingencies unless the possible loss or gain is remote. Where a material contingency
cannot be reasonably quantified it is disclosed in the Schedule of Unquantifiable Contingencies.
1.24
Reporting by Outcomes
A comparison of Budget and Actual figures by outcome specified in the Government Appropriation Acts
is presented in Note 4.
1.25
Comparative Figures
Where necessary, comparative figures have been adjusted to conform to changes in presentation in these
financial statements.
Note 2
Economic Dependency
CSIRO was established by the Science and Industry Research Act 1949 and is controlled by the
Commonwealth of Australia.
It receives approximately two thirds of its funding from Commonwealth Parliamentary appropriations
and it has no expressed borrowing powers under its enabling legislation.
Note 3
Segment Reporting
CSIRO principally operates in the field of scientific and industrial research and development in Australia
with a small overseas presence related to specific Australian research objectives. It is therefore considered
that for segment reporting, it operates in one industry (scientific research and development) and one
geographical location.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[123]
Note 4
Reporting by Outcomes
CSIRO’s outputs contribute to a single outcome, that is, to “enhance innovation, productivity and
competitiveness in Australian industry with improved understanding and management of the environment
and natural resources in the interest of the Australian community”.
2001
2000
Actual
Budget
Actual
Budget
$’000
$’000
$’000
$’000
610 032
610 032
597 540
597 540
(a) Reporting by outcome for 2000/2001
Revenues
Revenue from Government Appropriations
Additional estimates of revenue from
Government – Appropriation Acts 3 & 4
Revenue from other sources
Increase to original revenue from other
sources
1 010
1 010
19 553
19 553
611 042
611 042
617 093
617 093
274 622
276 169
278 125
252 952
–
–
–
11 709
274 622
276 169
278 125
264 661
Total revenues
885 664
887 211
895 218
881 754
Net cost to budget outcome
889 601
887 211
888 134
881 754
1 269 153
1 318 447
1 293 950
1 288 150
935 462
944 709
952 868
945 784
Total assets deployed as at 30 June
Net assets deployed as at 30 June
(b) Report by outcome by funding source
for 2000/2001
Expenses against revenue from
Government Appropriations
Expenses against revenue from other
sources
611 042
611 042
617 093
617 093
278 559
276 169
271 041
264 661
Total expenses against output
889 601
887 211
888 134
881 754
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[124]
Notes
Note 5
2001
2000
$’000
$’000
611 042
617 093
Operating Revenues
5.1
Revenues from Government
Appropriations for outputs
5.2
4
Sales of goods and services
Research and development activities
5.3
215 208
219 106
Agriculture, Fisheries and Forestry – Australia – contribution to the
operation of the Australian Animal Health Laboratory National Facility
6 129
6 129
Consultancies, collaboration and testing fees
11 221
8 121
Publications, research products and processes
8 619
8 802
Royalties and license fees
9 276
8 259
250 453
250 417
6 444
6 251
–
138
Interest
Bank and term deposits
5.4
Dividends
Other company
5.5
Net gains/(losses) from sales of assets
Property, plant and equipment
11 236
751
(998)
8 612
10 238
9 363
59
53
Contributions – staff and others
1 241
1 267
Donations
2 952
713
Rental
2 874
3 330
–
6 325
7 067
11 635
Shares
5.6
Net foreign exchange gains
Non–speculative
5.7
Other revenues
Computer software brought to account as a result
of a change in accounting policy
13
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[125]
Note 6
6.1
Operating lease rentals
437 902
250 583
247 074
9 238
8 172
259 821
255 246
74 756
76 521
1 616
789
Amortisation of intangibles
1 331
–
77 703
77 310
Write–down of assets
Bad debts
102
240
Receivables – increase in provision for doubtful debts
468
( 98 )
( 1 000 )
1 245
(430)
1 387
1 240
2 950
1 062
535
43 327
15 160
Other expenses
Contamination clean up and other
Borrowing costs expense
Finance charges on lease liabilities
Note 7
445 269
Amortisation of finance leased assets
Investment – provision for diminution in value written back
6.6
19 582
Depreciation and amortisation
Depreciation and amortisation of property, plant and equipment
6.5
418 320
12 436
Suppliers
Supply of goods and services
6.4
432 833
Employees expenses
Separation and redundancy
6.3
2000
$’000
Operating Expenses
Remuneration for services provided
6.2
2001
$’000
Cash
Cash at bank and on hand
Cash at bank – trust monies
Deposits – at call
Total cash
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[126]
8 477
9 464
57 909
30 000
109 713
54 624
Notes
Note 8
2001
2000
$’000
$’000
Receivables
Goods and services
44 124
31 410
Provision for doubtful debts
( 999 )
( 535 )
43 125
30 875
Property sales
–
6 986
4 322
7 540
47 447
45 401
34 904
37 293
Less than 30 days
7 364
5 465
30 to 60 days
3 723
1 334
60 to 90 days
885
885
1 570
959
13 542
8 643
48 446
45 936
27 008
89 590
Other
Total receivables
Gross receivables which are overdue are aged as follows:
Not overdue
Overdue by:
More than 90 days
Total gross receivables
Note 9
Investments
R&D Syndicate deposits – under contract
Shares – at cost
23
% CSIRO
interest
Unlisted associate companies (a)
Dunlena Pty Ltd
47.0
5
5
Gene Shears Pty Ltd
50.0
580
580
Gropep Pty Ltd
–
545
X–Ray Technologies Pty Ltd
33.1
–
1 290
1 290
Ceramic Fuel Cells Ltd
20.3
1 879
1 813
–
1 001
Quantm Pty Ltd
–
Quickstep Holdings Pty Ltd
22.5
Provision for diminution in value
1.8
Unlisted subsidary companies (b)
1.2
480
–
4 234
5 234
( 4 234 )
( 5 234 )
–
–
–
–
1 126
1 126
Listed companies (c)
Australian Magnesium Corporation Ltd
Gropep Limited
Woolstock Australia Limited
545
–
55
–
1 726
1 126
10
58
45
–
28 789
90 774
Other unlisted companies
Unlisted entities
Investment in joint venture entity accounted for using
the equity method
21(e)
Total investments
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[127]
Note 9
Investments (cont)
(a) Associate Companies
Names
Principal Activities
Dunlena Pty Ltd
A trustee company for an unincorporated joint venture to develop
agricultural chemicals.
Gene Shears Pty Ltd
Conduct research projects based on the Ribozyme technology and
investigate licensing and development of its commercial applications
hereof.
Quickstep Holdings Pty Ltd
Development and sale of the Quickstep™ process manufacturing
technology for uses with polymer composite.
X–Ray Technologies Pty Ltd
Identifying applications for phase contrast imaging technology and
completing the first concept development prototype of an
ultramicroscope.
Ceramic Fuel Cells Ltd
Research and development of fuel cell technologies and analysing their
market application opportunities.
Quantm Pty Ltd
Market and develop software product ‘Align 3D’, developed to optimise
route alignments for road and rail projects. This company was sold
during the year.
Gropep Pty Ltd
Development, manufacture, licensing and sale of biotechnology products.
This company was listed on the Australian Stock Exchange and changed
its name to Gropep Limited during the year.
(b) Subsidiary Companies – Fully Owned
(i) R&D Syndication Companies
The following companies were acquired when investors in the Syndication exercised their put options
under the agreements:
Exsynd 1 Pty Ltd
Exsynd 4 Pty Ltd
Exsynd 2 Pty Ltd
Exsynd 5 Pty Ltd
Exsynd 3 Pty Ltd
(ii) R&D Start–up Companies
The following companies which cost less than $1 000 have either been acquired or incorporated to
commercialise CSIRO’s intellectual properties:
2001
2000
Aries Information Services Pty Ltd
$
2
$
1
CSIRO Bioinformatics Pty Ltd
12
–
Goldwood Holdings Pty Ltd
2
–
Inmag Pty Ltd
12
–
Provision for diminution in value
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[128]
28
1
( 28 )
(1)
–
–
Note 9
2001
2000
$’000
$’000
Investments (cont)
(c) Listed Companies
The quoted market value of the following listed companies as at 30 June 2001 were:
Australian Magnesium Corporation Ltd
Gropep Limited
Woolstock Australia Limited
Note 10
671
716
24 904
unlisted
54
–
25 629
716
Land and buildings
Land
At cost
At June 1999 valuation
At July 2000 valuation*
Buildings
At cost
At June 1999 gross valuation
At July 2000 gross valuation*
Accumulated depreciation
Capital works in progress – at cost
Leasehold improvements
At cost
At June 1999 gross valuation
Accumulated amortisation
1 238
774
109 070
149 330
45 383
–
155 691
150 104
23 861
11 779
1 044 711
1 219 665
43 195
–
1 111 767
1 231 444
(548 649)
(624 353)
563 118
607 091
27 173
23 658
590 291
630 749
3 227
642
65 815
77 101
69 042
77 743
( 31 149 )
( 40 204 )
37 893
37 539
Buildings under finance lease
At cost
22 524
–
At June 1999 gross valuation
20 827
20 827
Accumulated amortisation
Total land and buildings
*These properties are designated for sale.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[129]
43 351
20 827
( 4 795 )
( 3 786 )
38 556
17 041
822 431
835 433
Note 11
2001
2000
$’000
$’000
Plant and equipment
Plant and equipment
At cost
112 081
81 426
At July 1998 gross valuation
439 991
452 842
Accumulated depreciation
Research vessels
At cost
At July 1998 gross valuation
Accumulated depreciation
Plant and equipment under finance lease
At cost
At July 1998 gross valuation
Accumulated amortisation
Total plant and equipment
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[130]
552 072
534 268
( 343 761 )
( 317 980 )
208 311
216 288
670
654
46 093
46 138
46 763
46 792
( 25 822 )
( 23 928 )
20 941
22 864
5 108
2 434
100
100
5 208
2 534
( 921 )
( 314 )
4 287
2 220
233 539
241 372
Note 11
Plant and equipment (cont)
(a) Analysis of property, plant and equipment and intangibles
Movement summary 2000/2001 for all assets irrespective of valuation basis
Description
Gross value as at 1.7.00
Additions
Revaluations increase/(decrease)
Disposals
Gross value as at 30.6.2001
Land
Buildings
Total
Land &
Buildings
$’000
$’000
$’000
$’000
$’000
$’000
150 104
1 353 672
1 503 776
583 595
15 480
2 102 851
3 048
63 268
66 316
35 417
–
101 733
55 369
( 97 009 )
( 41 640 )
–
–
( 41 640 )
( 52 830 )
( 68 598 )
( 121 428 )
( 14 969 )
–
( 136 397 )
Plant and
Equipment
Intangibles
(Note 13)
Total
155 691
1 251 333
1 407 024
604 043
15 480
2 026 547
Accumulated depreciation/
amortisation as at 1.7.00
–
668 343
668 343
342 223
9 155
1 019 721
Depreciation/amortisation
–
35 275
35 275
41 097
1 331
77 703
Revaluations increase/(decrease)
–
( 87 762 )
( 87 762 )
–
–
( 87 762 )
Adjustment for disposals
–
( 31 263 )
( 31 263 )
( 12 816 )
–
( 44 079 )
Accumulated depreciation/
amortisation as at 30.06.01
–
584 593
584 593
370 504
10 486
965 583
Net book value as at 30.06.01
155 691
666 740
822 431
233 539
4 994
1 060 964
Net book value as at 30.06.00
150 104
685 329
835 433
241 372
6 325
1 083 130
Total
2001
Total
2000
(b) Total property, plant, equipment and intangibles classified by title, specific uses and zoning
Description
Land
Freehold
Commonwealth Crown Leases
Leasehold
National Facilities
Buildings
Plant and
Equipment Intangibles
$’000
$’000
$’000
$’000
$’000
$’000
92 725
451 713
–
–
544 438
692 460
4 318
145 940
–
–
150 258
204 516
–
69 042
–
–
69 042
77 743
8 765
470 919
200 869
–
680 553
675 414
Deed of Grant
–
–
–
–
–
2 535
Finance Lease
4 500
43 351
5 208
–
53 059
27 861
45 383
43 195
–
–
88 578
–
–
27 173
–
–
27 173
23 658
Designated for Sale
Capital Works in Progress
155 691
1 251 333
206 077
–
1 613 101
1 704 187
Plant and Equipment
–
–
397 966
–
397 966
383 184
Intangibles
–
–
–
15 480
15 480
15 480
Gross value
155 691
1 251 333
604 043
15 480
2 026 547
2 102 851
–
( 584 593 )
( 370 504 )
( 10 486 )
155 691
666 740
233 539
4 994
Accumulated depreciation/amortisation
Net book value as at 30 June
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[131]
( 965 583 ) ( 1 019 721 )
1 060 964
1 083 130
Note 11
Plant and equipment (cont)
Freehold
Held in Fee Simple – however, the majority of freehold properties are
zoned “Public Purpose Commonwealth” which restricts sale potential.
Commonwealth Crown Leases
Represents ACT sites that are held on 99 year leases with a restricted
purpose clause “Scientific Research Purposes”.
Leasehold
Property covered by various lease arrangements with Universities, State
Governments and other entities.
National Facilities
Represents Australian Animal Health Laboratory, Australia Telescope,
National Measurement Laboratory and the Oceanographic Research
Vessel “Franklin” managed by CSIRO on behalf of the Commonwealth
Government.
Deed of Grant
Covers property that reverts to the State Government when vacated by
CSIRO.
Designated for sale
Properties identified for sale due to rationalisation and consolidation of
research sites and a joint property review by CSIRO and Department of
Finance and Administration.
Finance leases
Represents land and buildings subject to finance lease arrangements
with State Governments.
Capital works in progress
Relates to building works currently under construction.
The specialised nature of CSIRO’s buildings and the zoning restrictions on land use, and the consequent
low levels of demand for such properties, mean that the market values of the properties may be
significantly lower than the “existing use value” to CSIRO. Where this is the case the property is valued at
“existing use value”.
(c) National facilities
The Australian Animal Health Laboratory (AAHL), the Australia Telescope (AT), the Oceanographic Research
Vessel (ORV) “Franklin” and the National Measurement Laboratory (NML) have been established by the
Commonwealth Government as national facilities to satisfy an identified national research need. The term
‘National Facility’ denotes substantial instrumentation, equipment and costs of such magnitude that the
expense can only be justified on the basis of shared use by researchers from several organisations. The
primary criteria require that the facilities are specifically designated for national use and that they are
made available to scientists according to the merit of their proposals. These facilities are controlled and
administered by CSIRO on behalf of the Commonwealth Government.
Details of National Facilities included in the above totals of Land and Buildings and Plant and Equipment
are as follows:
Land
Buildings
Accumulated depreciation
AAHL
$’000
AT
$’000
ORV
“Franklin”
$’000
NML
$’000
Total
$’000
8 765
–
–
–
8 765
424 164
–
–
46 755
470 919
( 203 127 )
–
–
( 22 646 )
( 225 773 )
221 037
–
–
24 109
245 146
8 165
147 976
29 345
15 383
200 869
( 6 367 )
( 79 097 )
( 18 374 )
( 8 275 )
( 112 113 )
1 798
68 879
10 971
7 108
88 756
Net book value as at 30.6.01
231 600
68 879
10 971
31 217
342 667
Net book value as at 30.6.00
244 631
71 630
12 458
28 223
356 942
Plant and equipment
Accumulated depreciation
The operating expenses for the above National Facilities for the financial year amounted to
$51 335 089 (2000 $49 651 704) are included in CSIRO’s Statement of Financial Performance.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[132]
Notes
Note 12
1.14
Total inventories held for resale
745
896
745
1.7
At June 2000 gross valuation
Accumulated amortisation
Total intangibles – net book value
15 480
15 480
( 10 486 )
( 9 155 )
4 994
6 325
19 272
17 985
1 611
781
461
510
21 344
19 276
Other non–financial assets
Contract research work in progress – at cost
1.3
Prepaid property rentals
Other prepayments
Total other non–financial assets
Note 15
896
Intangibles
Computer software
Note 14
2000
$’000
Inventories held for resale
Books and media products –
at lower of cost and net realisbale value
Note 13
2001
$’000
Leases
Finance lease liability is payable as follows:
Within one year
Within one to five years
More than five years
Service and maintenance charges
Minimum lease payments
Future finance charges
Total finance lease liability
4 380
1 656
15 365
5 743
30 313
16 809
50 058
24 208
–
(1)
50 058
24 207
( 6 824 )
(3 810 )
43 234
20 397
Lease liability is represented by:
Current
Non–Current
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[133]
3 426
1 116
39 808
19 281
43 234
20 397
Notes
Note 16
Note 18
Employees
10 808
10 838
Provision for recreation leave
49 222
42 964
Provision for long service leave
97 283
91 614
Provision for severance pay
3 721
2 860
Provision for redundancy
9 014
6 330
170 048
154 606
Trade creditors
23 911
28 299
Total suppliers’ liability
23 911
28 299
Suppliers
Other liabilities
Contract research revenue received in advance
R&D Syndicates – under contract
9, 23
39 536
31 274
27 008
89 740
Other creditors
9 336
4 461
Provisions – other
3 740
2 500
GST payable
7 874
341
87 494
128 316
Total other liabilities
Note 19
2000
$’000
Accrued wages and salaries
Total employee entitlement liability
Note 17
2001
$’000
Equity – movement summary 2000/2001
Description
Accumulated Surplus
2001
2000
$’000
$’000
Asset Revaluation
Reserve
2001
2000
$’000
$’000
Total Equity
2001
2000
$’000
$’000
Balance as at 1 July
555 044
577 960
397 824
397 824
952 868
Operating surplus
100 999
119 888
–
–
100 999
119 888
Revenue measure (a)
–
( 30 000 )
–
–
–
( 30 000 )
Equity repayment (b)
( 59 591 )
–
–
–
( 59 591 )
–
Capital use charge (note 1.16)
(104 936)
( 112 804 )
–
–
( 104 936 )
( 112 804 )
–
–
46 122
–
46 122
–
491 516
555 044
443 946
397 824
935 462
952 868
Net revaluation increase (c)
Balance as at 30 June
975 784
(a) Revenue measure – payment to Government
In agreeing to CSIRO’s appropriation budget for the triennium (1997–1998 to 1999–2000), the Government
imposed a revenue measure requiring CSIRO to provide savings through efficiency gains, asset
rationalisation and other measures totalling $60 million to be paid periodically to the Government over
three years. The final payment of $30 million was paid in June 2000.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[134]
Note 19
Equity – movement summary 2000/2001 (cont)
(b) Equity repayments
Following a joint (CSIRO/Department of Finance and Administration) review of CSIRO’s property holdings, six
properties (in ACT, NSW, QLD and WA) were identified for sale and leaseback over the next three years.
CSIRO will make equity repayments to the Government of proceeds from the sale of these properties. The
first property at North Ryde, NSW was sold and gross proceeds of $59 591 303 was repaid to the
Government in June 2001.
To ensure these sales have no adverse financial impact on CSIRO’s research activities, CSIRO will receive
Government funding for additional sale and ongoing additional rental costs.
Notes
2001
2000
$’000
$’000
(c) Asset revaluation reserve
The net revaluation increase in the asset revaluation reserve comprises:
Revaluation increase/(decrease) of properties designated for sale
– land
– buildings and leasehold improvements
Net revaluation increase
Note 20
55 369
–
( 9 247 )
–
46 122
–
15 160
Statement of cash flows reconciliation
(a) For the purpose of the Statement of Cash Flows, cash is represented by:
Cash at bank and on hand
7
43 327
Cash at bank – trust monies
7
8 477
9 464
Deposits – at call
7
57 909
30 000
9, 23
27 008
89 590
136 721
144 214
R&D Syndicate deposits – under contract
(b) Reconciliation of operating surplus to net cash provided by operating activities:
Operating surplus
100 999
119 888
Depreciation and amortisation of property, plant and equipment
6
76 372
77 310
Amortisation of intangibles
6
1 331
–
Increase/(decrease) in provision for diminution in value
9
( 1 000 )
1 245
(Profit)/loss on disposal of property, plant and equipment
5
( 11 236 )
( 751 )
(Profit)/loss on disposal of shares
5
998
( 8 612 )
(Increase)/decrease in receivables
8
( 9 033 )
( 8 592 )
(Increase)/decrease in intangibles
13
–
( 6 325 )
( 196 )
(Increase)/decrease in inventories
12
( 151 )
(Increase)/decrease in investment in joint venture, FSA
21
( 361 )
–
(Increase)/decrease in other assets
14
( 2 068 )
1 056
10 663
Increase/(decrease) in employee liabilities
16
15 442
Increase/(decrease) in liability to suppliers
17
( 4 388 )
2 460
Increase/(decrease) in other liabilities
18
14 692
( 4 961 )
Increase/(decrease) in GST liability
18
Increase/(decrease) in trust monies liability
Net cash provided by operating activities
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[135]
7 533
341
( 987 )
( 6 832 )
188 143
176 694
Note 21
Joint ventures
CSIRO participates in a number of joint ventures. In accordance with AAS19, these are segregated into joint
venture operations and joint venture entities.
(a) Joint Venture Operations – Cooperative Research Centres (CRCs)
The Cooperative Research Centres Program, launched in May 1990 by the Commonwealth Government, was
established to assist two or more collaborators to carry out research contributing to the development of
internationally competitive industry sectors. The Program supports long–term, high–quality research,
improved links between research and application, and stimulation of education and training.
The following CRCs listed below have the characteristics of joint venture operations and are reported as
such. The CRCs denoted with an asterisk (*) are incorporated bodies.
During the financial year, CSIRO’s total actual ‘in kind’ and cash contributions to CRCs from its own
resources was $50.3 million; together with monies from the Commonwealth Government and external
sources specifically for the CRCs, the total expended was $78.6 million. CSIRO’s contributions and expenses
are included in the Statement of Financial Performance. CSIRO’s total actual contributions life to date for
CRCs listed below amounted to $402.1 million. As the success of CRC’s is dependent on uncertain R&D
outcomes, the value of CSIRO’s contributions does not necessarily represent equity value.
Approximately $16 million or 7% of CSIRO’s total plant and equipment assets are used for CRC activities.
At 30 June 2001, CSIRO is a participant in 44 CRCs and CSIRO’s interest in each of the CRCs is determined
by the individual CRC agreement. These are:
Names of Cooperative Research Centres
CSIRO’s Equity Interest (%)
(excluding Commonwealth contributions)
AGRICULTURE AND RURAL BASED MANUFACTURING
Aquaculture
12
Australian Cotton CRC
26
Cattle and Beef Quality
29
Premium Quality Wool
42
Quality Wheat Products and Processes
24
Sustainable Production Forestry
32
Sustainable Rice Production
16
Sustainable Sugar Production
19
Tropical Plant Protection
27
Viticulture
24
ENVIRONMENT
Antarctica and the Southern Ocean
15
Biological Control of Pest Animals
57
Catchment Hydrology
29
Costal Zone, Estuary and Waterway Management
27
Freshwater Ecology
9
Greenhouse Accounting
16
Sustainable Development of Tropical Savannas
12
Tropical Rainforest Ecology and Management
33
Waste Management and Pollution Control
8
Water Quality and Treatment
13
Weed Management Systems
31
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[136]
Note 21
Joint ventures (cont)
Names of Cooperative Research Centres
CSIRO’s Equity Interest (%)
(excluding Commonwealth contributions)
INFORMATION AND COMMUNICATION TECHNOLOGY
Advanced Computational Systems
Australian Telecommunications
34
4
Enterprise Distributed Systems Technology
21
Satellite Systems
25
MANUFACTURING TECHNOLOGY
Bioproducts
61
Cast Metals Manufacturing*
30
Intelligent Manufacturing Systems and Technologies*
7
International Food Manufacture
11
Microtechnology
9
Polymers*
28
Welded Structures*
14
MEDICAL SCIENCE AND TECHNOLOGY
Cellular Growth Factors
8
Diagnostic Technologies
20
Eye Research and Technology
21
Tissue Growth and Repair
22
Vaccine Technology
26
MINING AND ENERGY
A J Parker CRC for Hydrometallurgy
50
Australian Mineral Exploration
43
Australian Petroleum CRC
50
Black Coal Utilisation
14
Clean Power from Lignite
15
G K Williams CRC for Extractive Metallurgy
56
Landscape Evolution and Mineral Exploration
44
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[137]
Note 21
Joint ventures (cont)
(b) Joint Venture Operations – High Performance Computing and Communication Centre (HPCCC)
CSIRO participates in a joint venture operation with the Bureau of Meteorology (BOM) in a 50/50
ownership and operation of a HPCCC. CSIRO and BOM jointly own the super computer and also jointly
share in the usage and operating expenses of HPCCC. CSIRO’s 50% share of the super computer and other
plant and equipment in the joint venture of $8.5 million (2000 $6.5 million) written down value and
its share of operating expenses are included in CSIRO’s Statement of Financial Position and Statement
of Financial Performance respectively.
(c) Joint Venture Operations – Graingene
CSIRO has a one third interest in the joint venture Graingene with the Grains Research and Development
Corporation and the Australian Wheat Board Limited. Graingene is a collaborative research and
development venture where research and industry participants work together to identify, develop and bring
to market grains technology. CSIRO’s one–third share of operating expenses of Graingene is included in
CSIRO’s Statement of Financial Performance.
(d) Joint Venture Operations – other
In addition, CSIRO has collaborative arrangements with other parties to perform research and share
in the outputs (ie mainly intellectual property) in proportion to each participant’s research input, initial
intellectual property or cash contributions. These collaborative arrangements also share the characteristics
of joint venture operations. The principal activities of these joint venture operations are scientific research
and development with the ultimate aim of sharing in the output (ie intellectual property). The numbers of
this type of arrangement make it impractical to list separately. CSIRO’s contributions to these joint ventures
are included in CSIRO’s Statement of Financial Performance.
(e) Joint Venture Entities – Food Science Australia (FSA)
CSIRO has a 50% interest in an unincorporated joint venture, FSA. It provides food industry clients with
complete, integrated research for local training and commercial product and process levels for end
services. During the year FSA made an operating surplus of $722 000 (2000 $309 317). In accordance with
the joint venture agreement the operating surplus is shared equally between the joint venture parties.
CSIRO’s share of the operating surplus was $361 000 (2000 $154 658). CSIRO’s investment in FSA has been
accounted for using the equity method.
Investment/(liability) in FSA at 1 July
Share of FSA’s reduction in 1998–99 operating deficit
Share of FSA’s net operating surplus for the year
2001
2000
$’000
$’000
( 316 )
( 584 )
–
114
361
154
45
( 316 )
Investment in joint venture entity, FSA accounted for
using the equity method as at 30 June
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[138]
Note 22
Related entities
During the financial year CSIRO provided actual in–kind contributions in the form of scientific staff and
research facilities totalling $1 390 146 (2000 $2 597 894) to Biomolecular Research Institute Limited (BRI).
The contributions in accordance with formal agreements between CSIRO and BRI are accounted for as
expenses in CSIRO’s Statement of Financial Performance.
BRI is principally a research and development company involved in the development of pharmaceutical and
biological products. It is a company limited by guarantee. As at 30 June 2001 CSIRO has a 60.2% beneficial
interest in the company and its in–kind contributions to 30 June 2001 amounted to $32 million.
Note 23
Research and development syndicates
As at 30 June 2001, CSIRO is a party to an agreement whereby the Research and Development Syndicate
has purchased intellectual properties, with an option to sell back to CSIRO at a guaranteed price, and
provided funds to CSIRO to undertake further research and development to advance the intellectual
properties to commercialisation.
All research and development work is now complete. The balances of deposits (Note 9) are held as
security to meet CSIRO’s obligations (Note 18) to purchase the intellectual property held by the Syndicate,
at the guaranteed option price, should the investors elect to sell. Investors of two R&D Syndicates have
exercised their put options during the year under the agreements and the R&D Syndicate deposits held
under contract were paid to the investors.
Note 24
Resources made available to CSIRO and not included in the Statement of
Financial Position
At valuation or cost
Land
Buildings
Plant and
equipment
Total
$’000
$’000
$’000
$’000
12 376
60 837
34 345
107 558
Accumulated depreciation
–
( 38 697 )
( 30 983 )
( 69 680 )
Net value as at 30.6.2001
12 376
22 140
3 362
37 878
Net value as at 30.6.2000
14 141
23 437
3 070
40 648
The above assets are made available to CSIRO at little or no cost in accordance with formal agreements
with contributors. They have either been purchased out of contract research monies and expensed in the
year of purchase in accordance with the accounting policy Note 1.6, or made available to CSIRO at little
or no cost.
These assets are controlled and accounted for in the contributors’ books and any proceeds from their
disposal are refundable to the contributors in accordance with formal agreements on equity share. The
fair value of the in–kind contributions of these assets could not be reliably determined and therefore not
brought to account in the Statement of Financial Performance. Although a valuable resource, these assets
can be a constraint to management decision making in that they must be operated in accordance with the
terms of their provision to CSIRO.
The major contributor of the above assets is Australian Wool Innovation Pty Limited.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[139]
Note 25
2001
2000
$’000
$’000
694
725
Monies held in trust
Monies held in trust which are not included in the Statement of Financial Position.
They are represented by cash at bank and the following investments
in equities, bank securities and term deposits:
Investments
M F Cash Management Fund*
Potter Warburg Cash Management Ltd**
One Eleven Nominees Pty Ltd**
Members Australia Credit Union Ltd**
Cash at bank
Total monies held in trust as at 30 June
49
103
609
457
583
560
1 935
1 845
466
418
2 401
2 263
* Relates to the Ken and Yasuko Myer Plant Science Research Fund
** Relates to the Elwood and Hannah Zimmerman Trust Fund
(a) The components of trust funds are as follows:
The Ken and Yasuko Myer Plant Science Research Fund
The Elwood and Hannah Zimmerman Trust Fund
The Australian National Wildlife Collection Foundation
Total monies held in trust as at 30 June
779
818
1 241
1 120
381
325
2 401
2 263
The Ken and Yasuko Myer Plant Science Research Fund – Established to fund plant science research.
The Elwood and Hannah Zimmerman Research Trust Fund – Established to fund weevil research and the
curation of the Australian National Insect Collection (ANIC) weevil collection.
The Australian National Wildlife Collection Foundation – Established to advance the interests and activities
of the Australian National Wildlife Collection, a national reference record of Australian vertebrate fauna.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[140]
Note 25
Monies held in trust (cont)
(b) Movements of trust funds summary
Balance at 1 July
Zimmerman
ANWC
Foundation
Total
2001
$’000
822
$’000
1 120
$’000
325
$’000
2 267
Receipts during year
62
–
76
138
Interest and dividend
102
141
18
261
( 207 )
( 20 )
( 38 )
( 265 )
779
1 241
381
2 401
2001
$
2000
$
195 000
205 000
Expenditure
Balance at 30 June
Note 26
Myer
Remuneration of auditors
Remuneration to the Auditor–General for:
Auditing the financial statements for the reporting period
The Auditor–General received no remuneration for other services during the reporting period.
Note 27
Collections
CSIRO owns several collections used for scientific research. CSIRO’s collections have been established over
time and cover an extensive range of evolution and change in species. The collections are irreplaceable,
bear scientific and historical value and are not reliably measurable in monetary terms. Therefore, CSIRO has
not recognised them as an asset in its financial statements. The main collections held by CSIRO include:
Australian National Herbarium (ANH) – The ANH is one of the largest plant collections in Australia with
approximately one million preserved plant specimens. It is unique among the Australian Herbaria in having
a national focus for its collections, acquisition and research programs.
Australian National Insect Collection (ANIC) – The ANIC has over 11 million specimens and is the largest
research collection of Australian insects and related organisms in the world.
Australian National Wildlife Collection (ANWC) – The ANWC, with over 80 000 specimens, holds CSIRO’s
land vertebrate collections, including the most comprehensively documented collections of Australian–New
Guinean birds in the world.
CSIRO National Fish Collection (ANFC) – CSIRO’s ANFC, also known as the ‘ISR Munro Ichthyological
Collection’, houses more than 80 000 registered adult and 40 000 registered larval specimens of almost
3 000 species from Australasia, Asia, Antarctic, and the SubAntarctic Islands. It is among Australia’s most
diverse ichthyological collections and contains one of the largest collections of sharks, rays and deepwater
fishes in the Southern Hemisphere.
Other Collections – These include the Australian Tree Seed Collection, CSIRO’s Dadswell wood collection,
CSIRO collection of living microalgae, and wood inhabiting fungi collection.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[141]
Note 28
2001
$
2000
$
820 502
692 934
74 263
93 479
894 765
786 413
Remuneration of Board Members
Remuneration and superannuation benefits received or due and receivable
by full–time and part–time Board Members were:
Board Members’ remuneration
Payments to superannuation funds for Board Members
The number of Board Members whose total remuneration fell within the following bands were:
Nil
$
–
10 000
2001
2000
Number
2
Number
2
10 001
–
20 000
1
–
20 001
–
30 000
4
5
30 001
–
40 000
1
–
50 001
–
60 000
1
1
160 001
–
170 000
1
–
250 001
–
260 000
–
1
350 001
–
360 000
–
1
520 001
–
530 000
1*
–
* Includes salary and other payments for the retiring acting Chief Executive
Note 29
Meetings of Board Members and Audit Committee
During the financial year, six Board Meetings and four Audit Committee Meetings were held. The number of
meetings attended by each of the Board and Audit Committee members was as follows:
Board Members’ Meetings
No. eligible
No.
to attend
attended
Audit Committee Meetings
No. eligible
No.
to attend
attended
D C K Allen (Chairman)
6
6
4
4
G G Garrett (appointed 8/1/2001)
3
3
2
2
A J Gandel
6
5
–
–
R A Higgins
6
6
–
–
C B Livingstone (appointed 1/1/2001)
3
2
–
–
D P Mercer
6
6
4
3
D F J McDonald
6
5
–
–
M J O’Kane
6
5
–
–
A E de N Rogers
6
5
4
4
V R Sara
6
4
–
–
C M Adam (term ended 7/1/2001)
3
3
2
2
The members of the Audit Committee are Mr D P Mercer (Chairman), Mr A E de N Rogers and
Ms E Alexander (independent adviser and non Board Member). Ms E Alexander attended all Audit
Committee meetings held for the year.
The Chairman of the Board is an ex officio member of the Audit Committee and the Chief Executive is
invited to attend meetings of the Audit Committee.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[142]
2001
$
Note 30
2000
$
Remuneration of Officers
Remuneration received or due and receivable by Officers
1 808 695
1 829 282
The number of Officers included in these figures is shown below in the relevant income bands:
$
2001
2000
Number
Number
Nil
160 001
–
–
100 000
170 000
–
1
1
–
190 001
–
200 000
–
2
220 001
–
230 000
–
2
250 001
–
260 000
–
1
260 001
–
270 000
1
–
270 001
–
280 000
1
1
280 001
–
290 000
1
–
290 001
–
300 000
1
–
350 001
–
360 000
–
1
520 001
–
530 000
1*
–
The Officers’ remuneration includes the Chief Executive and Deputy Chief Executives concerned with,
or taking part in, the management of CSIRO.
*Includes salary and other payments for the retiring acting Chief Executive.
Note 31
Related party disclosures
Board Members – The Board Members of CSIRO during the financial year were:
D C K Allen (Chairman)
A J Gandel
G G Garrett (appointed 8/1/2001)
M J O’Kane
R Higgins
A E de N Rogers
D P Mercer
V R Sara
D F McDonald
C B Livingstone (appointed 1/1/2001)
C M Adam (term ended 7/1/2001)
Remuneration – Information on remuneration of Board Members is disclosed in Note 28.
Board Members’ interests in contracts
Since 1 July 2000 no Board Member of CSIRO has received or become entitled to receive a benefit, other
than a benefit included in the aggregate amount of remuneration received or due and receivable shown in
Note 28 by reason of a contract made by CSIRO with the Board Member or with a firm of which the Board
Member is a member or with a company in which the Board Member has a substantial financial interest.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[143]
Note 31
Related party disclosures (cont)
Other transactions of Board Members – related entities
Dr C M Adam is a Director of an associate company, Ceramic Fuel Cells Ltd and Strategic Industry Research
Foundation Ltd. These companies have had contractual relationships with CSIRO which are based on
normal commercial terms and conditions in the field of research and development.
Mr R Higgins is the Chief Executive Officer and Secretary of the Department of Industry, Science and
Resources (DISR). During the financial year a number of grants and consultancy contracts were entered into
between DISR, on behalf of the Commonwealth of Australia, and CSIRO. The contracts are based on normal
terms and conditions for such arrangements. Mr R Higgins is also a Board Member of Austrade, Export
Finance Insurance Corporation, the Australian Research Council, Australian Tourist Commission, and the
Australian Sports Commission. All contracts and transactions between these entities and CSIRO are based
on normal commercial terms and conditions and there is no personal benefit to him.
Mr D P Mercer is the Chairman of Orica Ltd and Australia Pacific Airports Ltd. He is a Director of Australian
Prudential Regulating Authority and Chancellor of Royal Melbourne Institute of Technology (RMIT). Orica Ltd
has commercial relationships with CSIRO and RMIT is involved in a number of Cooperative Research
Centres in which CSIRO is a participant. CSIRO’s transactions in the field of research and development with
any of these entities are based on normal commercial terms and conditions.
Professor M J O’Kane is the Vice–Chancellor of the Adelaide University. There are transactions and other
arrangements between CSIRO and the Adelaide University. CSIRO has a number of buildings on the
University campus which are used by CSIRO for research and development. The University and CSIRO are
partners in a number of Cooperative Research Centres. CSIRO is a tenant on various campuses of the
University. In addition, Professor O’Kane is a Director of FH Faulding & Co Ltd. This entity has a number of
contractual relationships with CSIRO in the field of research and development based on normal commercial
terms and conditions.
Mr A E de N Rogers is Chairman of UniQuest Pty Ltd, Chairman of the Australian Institute of Marine Science
and a member of the Senate of the University of Queensland. These entities have a number of contractual
relationships with CSIRO in the field of research and development. The University of Queensland is also
a participant in a number of Cooperative Research Centres in which CSIRO is a participant. All contracts
are based on normal commercial terms and conditions.
Professor V R Sara is a full time Commonwealth Officer. She was Chair of the Australian Research Council
from September 1997 to 30 June 2001, and from 1 July 2001 is Chief Executive Officer, Australian Research
Council. She is also a member of several Government committees including the National Innovation
Awareness Council, the Biotechnology Centre of Excellence Expert Panel, the ICT Centre of Excellence
Advisory Panel, the Cooperative Research Centres Committee and the Coordinating Committee on Science
and Technology. The transactions with these entities, if any, are based on commercial terms and conditions.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[144]
Note 32
Financial instruments
(a) Terms, conditions and accounting policies
Financial instrument
Notes
Financial assets
Accounting policies
and methods
Nature of underlying
instrument
Financial assets are recognised
when control over future
economic benefits is
established and the amount
of the benefit can be reliably
measured.
Cash at bank and
Deposits at call
7
Cash at bank and deposits are
recognised at their nominal
amounts. Interest is credited
to revenue as it accrues.
Balance of cash at bank is
mainly from contract research
monies received in advance
and held in the Organisation’s
current bank account. Interest
is earned on the daily balance
at the prevailing daily 30–day
bank bill rate less fees and
is paid at month end.
Deposits at call relates to
temporarily surplus funds
placed on deposit with a
bank. Interest is earned
on the deposit.
Cash at bank –
trust monies
7
Cash at bank is recognised at
its nominal amount. Interest is
brought to account as it accrues.
Monies held in trust for
third parties.
Receivables for goods
and services and other
receivables
8
These receivables are
recognised at the nominal
amounts due less any provision
for doubtful debts. Provisions
are made when collection of
the debt is judged to be less
rather than more likely.
Credit terms are net
30 days.
R&D Syndicate deposits –
under contract
9
These deposits are recognised
at their nominal amounts.
Interest is brought to account
as it accrues in accordance with
R&D Syndicate agreements
(Notes 9 and 23).
These deposits are held as
security to meet CSIRO’s
obligations to buy back the
intellectual property held by
each syndicate, at the
guaranteed option price
should the investor elect
to sell on or before the
contracted date.
Listed and unlisted shares
9
These are carried at the lower
rate of cost or recoverable
amounts. No dividends have
been declared or paid by the
investee.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[145]
Note 32
Financial instruments (cont)
Financial instrument
Notes
Accounting policies
and methods
Nature of underlying
instrument
Financial liabilities are
recognised when a present
obligation to another party is
entered into and the amount
of the liability can be reliably
measured.
Financial liabilities
Finance lease liabilities
15
Trade creditors and other
creditors
17 & 18
Liabilities are recognised at the
present value of the minimum
lease payments at the
beginning of the lease.
The discount rates used are
estimates of the interest rates
implicit in the leases.
At reporting date, CSIRO had
finance leases with terms
averaging 17 years and a
maximum term of 25 years.
The interest rate implicit in
the leases averaged 3.3% p.a.
(2000 4.1%). The lease
liabilities are secured by the
lease assets and disclosed
in Notes 10 and 11.
Creditors and accruals are
recognised at their nominal
amounts, being the amounts
at which the liabilities will be
settled. Liabilities are
recognised to the extent that
the goods or services have
been received (irrespective
of having been invoiced).
Settlement is usually made
net 30 days.
R&D Syndicate –
under contract
18
These liabilities are recognised
at their nominal amounts.
Interest is brought to account
as it accrues in accordance with
R&D Syndicate agreements
(Notes 9 and 23).
As above for R&D Syndicate
deposits. They are held as
security to meet CSIRO’s
obligations under the R&D
Syndicate agreements, which
can be exercised on or before
the contracted date.
Research revenue
received in advance
18
Revenue from contract research
activities is recognised when
work is performed. Revenue
is deferred to the extent that
CSIRO has not performed its
contractual obligations as at
30 June 2001.
Research revenue received in
advance is not recognised as
revenue until work is
performed.
As above in cash at bank –
trust monies.
Being monies held in trust
for third parties. They are
payable on demand.
Trust monies
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[146]
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[147]
18
GST Payable
13 728
13 728
30 000
30 000
–
–
–
–
7 053
7 053
–
6 669
6 669
–
89 590
89 590
27 008
63 189
–
89 590
89 590
36 181
27 008
27 008
> 5 years
2001
2000
$’000
$’000
80 657
7 874
9 336
23 911
39 536
–
49 228
1 781
43 125
–
4 322
324
–
–
57 909
57 909
2 to 5 years
2001
2000
$’000
$’000
324
9 464
9 464
24 624
15 160
9 464
1 to 2 years
2001
2000
$’000
$’000
1 800
1 800
64 525
341
4 461
28 299
31 274
150
46 585
1 184
30 875
6 986
7 540
Non Interest
Bearing
2001
2000
$’000
$’000
Total financial liabilities (unrecognised)
8 477
8 477
51 804
43 327
8 477
1 year or less
2001
2000
$’000
$’000
Fixed Interest Rate
Legal claims & bank guarantees
Total liabilities
Total financial liabilities (recognised)
18
Finance lease liabilities
Trade creditors
Research revenue received in advance
R&D syndicates - under contract
Trust monies
Other creditors
Financial liabilities (recognised)
Total Assets
15
17
18
18
9
Shares
Total financial assets (recognised)
7
7
7
8
8
8
9
Notes
Cash at bank and cash on hand
Cash at bank - trust monies
Deposits - at call
Receivables for goods and services
Receivables for property sales
Other receivables
R&D Syndicate deposits
Financial assets (recognised)
Financial Instrument
Floating Interest
Rate
2001
2000
$’000
$’000
Financial instruments (cont)
(b) Interest rate risk
Note 32
190 799
1 184
15 160
9 464
30 000
30 875
6 986
7 540
89 590
324
324
333 691
159 376
7 874
43 234
23 911
39 536
27 008
8 477
9 336
1 800
1 800
341 082
183 976
341
20 397
28 299
31 274
89 740
9 464
4 461
1 269 153 1 293 950
185 949
1 781
43 327
8 477
57 909
43 125
–
4 322
27 008
Total
2001
2000
$’000
$’000
n/a
3.3
n/a
n/a
9.8
6.0
n/a
n/a
6.0
6.0
6.3
n/a
n/a
n/a
9.8
2001
%
n/a
n/a
n/a
4.1
n/a
n/a
9.8
6.2
n/a
n/a
6.2
6.2
6.5
n/a
n/a
n/a
9.8
Rate
2000
%
Effective Interest
Weighted Average
Note 32
Financial instruments (cont)
(c) Net fair values of financial assets and liabilities
2001
Financial assets
Cash at bank and on hand
2000
Notes
Total
carrying
amount
$’000
Aggregate
net fair
value
$’000
Total
carrying
amount
$’000
Aggregate
net fair
value
$’000
15 160
7
43 327
43 327
15 160
Cash at bank – trust monies
7
8 477
8 477
9 464
9 464
Deposits at call
7
57 909
57 909
30 000
30 000
Receivables for goods and services
8
43 125
43 125
30 875
30 875
Receivables for property sales
8
–
–
6 986
6 986
Other receivables
8
4 322
4 322
7 540
7 540
R&D Syndicate deposits – under contract
9
27 008
27 008
89 590
89 590
Shares
9
1 781
25 684
1 184
774
185 949
209 852
190 799
190 389
Financial liabilities (recognised)
Finance lease liabilities
15
43 234
43 234
20 397
20 397
Trade creditors
17
23 911
23 911
28 299
28 299
Research revenue received in advance
18
39 536
39 536
31 274
31 274
R&D Syndicate – under contract
18
27 008
27 008
89 740
89 740
Trust monies
8 477
8 477
9 464
9 464
Other creditors
18
9 336
9 336
4 461
4 461
GST Payable
18
7 874
7 874
341
341
159 376
159 376
183 976
183 976
324
324
1 800
1 800
Financial liabilities (unrecognised)
Schedule of
Contingencies
Legal claims & bank guarantees
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[148]
Note 32
Financial instruments (cont)
Financial assets
The net fair values of cash, deposits at call, trade debtors for sale of properties, goods and services and
R&D syndicate deposits approximate their carrying amounts.
The net fair values for listed equity investments is the quoted market price at reporting date, adjusted
for the transaction costs necessary for realisation.
The net fair values for unlisted equity investments in associate companies are fully provided for diminution
in value by the Board Members based on the underlying business of the investees in R&D and high
technology industries.
Other than for listed financial assets, none of the classes of financial assets are readily traded on
organised markets in standardised form.
Financial liabilities
The net fair values of finance leases are based on discounted cash flows using current interest rates
for liabilities with similar risk profiles.
The net fair values for trade creditors, contract monies received in advance, R&D syndicate under contract
and trust monies are approximated by their carrying amounts.
Hedges
CSIRO has specific forward exchange contracts to sell a total of $US 2 658 987 (2000 $US 900 000)
with various maturity dates after 30 June 2001, at an average exchange rate of $US 0.529.
(d) Credit risk exposures
CSIRO’s maximum exposures to credit risk at reporting date in relation to each class of recognised financial
assets is the carrying amount of those assets as indicated in the Statement of Financial Position.
The economic entity has no significant exposures to any concentrations of credit risk.
6 : F i n a n c i a l s t a t e m e n t s
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[149]
Appendix 1
Sector Advisory Committees as
at 30 June 2001
To ensure the continuing effectiveness of research and development for each Sector, CSIRO has appointed Sector
Advisory Committees with members representing its stakeholders and customers. These Committees assist in the
planning of research portfolios for each Sector, providing valuable information about the strategic research needs
of industry and society. The Committees also help in the uptake of research results by industry.
Manufacturing, Information and Service Industries >>
Built Environment Sector
Chairman
Mr Ian Johnston
Chief Executive
Government Property Office (WA)
Mr Alan Castleman
Chairman
Australian Unity Ltd
Mr John Murray
National Executive Director
Master Builders Australia
Tel (03) 9697 0380
Email [email protected]
Mr Vincent O’Rourke
Chief Executive
Queensland Rail
Members
Ms Gwen Andrews
Chief Executive
Australian Greenhouse Office
Mr David Thomson
Director RTA Technology
Roads & Traffic Authority (NSW)
Mr Russell Cooper
Managing Director
South East Water Ltd
Dr Stephen van der Mye
Managing Director
National Electricity Market Management Company
Mr Michael Delaney
Manager
Central Engineering Services
Leighton Contractors Pty Ltd
Mr Ross Wraight
Chief Executive
Standards Australia
Mr Richard Dinham
Chief Executive Officer
DesignInc Sydney Pty Ltd
Sector Coordinator
Mr Larry Little
CSIRO Building, Construction & Engineering
Mr David Evans
Managing Director
Hunter Water Corporation
Tel (03) 9252 6114
Email [email protected]
a p p e n d i x e s
c s i r o a n n u a l
[150]
r e p o r t
0 0 - 0 1
Chemicals and Plastics Sector
Chairman
Mr Alan Seale
Consultant
Tel (03) 9429 2670
Email [email protected]
Members
Ms Bronwyn Capanna
Executive Director
ACSMA
Dr Andrew Rath
Research & Development Manager (Asia Pacific)
Abbott Laboratories
Mr Roy Rose
General Manager Technology
Orica Australia
Dr Greg Smith
Managing Director
The IP Factory Pty Ltd
Professor John White
Research School of Chemistry
Australian National University
Dr Doreen Clark
Director
Organic Crop Protectants Pty Ltd
Sector Coordinator
Mr John Dean
General Manager
Industry Contact & Policy Teams
Department of Industry, Science & Resources
Tel (03) 9545 2519
Email [email protected]
Mr Andy Denver
President
USF Filtration & Separation Group
Mr Claude Gauchat
Executive Director
AVCARE
Dr Greg Simpson
CSIRO Molecular Science
Infor mation and Communication
Technologies Sector
Chairman
Mr John Kranenburg
Executive Director
Fujitsu Australia Ltd
Dr Greg Healy
International Manager
Nufarm Ltd
Tel (02) 9776 4751
Email [email protected]
Mr Leo Hyde
R&D Manager
DuPont Australia Ltd
Members
Dr Gary Anido
Head, Melbourne School Telecommunications
Multimedia & IT
Melbourne University Private
Mr Martin Jones
Chief Executive Officer
PACIA
Dr Margaret Matthews
Director Business Development
PACIA
Professor Ian Rae
History & Philosophy of Science
University of Melbourne
Dr Rod Badger
Deputy Secretary
Department of Communications, IT & the Arts
Dr Chris Beare
Chairman & CEO
Radiata Communications Pty Ltd
6 : F i n ea xn ec ci ua tl i vsa etp apsteuenmmd mei nax rte sy
c s i r o a n n u a l r e p o r t 0 0 - 0 1
[151]
Members
Mr James Clarke
Managing Director, Australian R&D Program
Nortel Networks
Mr Mark Albert
Managing Director
MTM Pty Ltd
Mr Rob Durie
Executive Director
Australian Information Industry Association
Dr Patricia Crook AO
Managing Director
Dynek Pty Ltd
Mr Steve Killelea
President, Chief Executive Officer
Integrated Research Pty Ltd
Mr Frank Cunningham
Manager, Technology
BHP Research Laboratories
Mr Ian McRae
Vice President
Cap Gemini Ernst & Young
Professor Iain Morrison
Deputy Head, Department of Information Systems
University of Melbourne
Dr Phil Robertson
Director General Manager, Research Division
Canon Information System Research Australia
Mr Graham Dawson
Director
Dawson Management Enterprises Pty Ltd
Mr Roger James
Industry Specialist, Defence & Aerospace
Department of State Development (VIC)
Mr Barry Murphy
Corporate Development Director
British Aerospace Australia
Mr Silvio Salom
Managing Director
Adacel
Mr Victor Perkin
General Manager, Manufacturing
AMCOR Food Cans Australasia
Sector Coordinator
Dr Stuart Romm
Chief Executive
HPM Industries Pty Ltd
Dr Rhys Francis
CSIRO Mathematical & Information Sciences
Tel (03) 8341 8231
Email [email protected]
Mr Victor Sidebotham
Retired
Integ rated Manufactured
Products Sector
Mr Cec Stubbs
Company Director
Mr Garry Wall
General Manager
Department of Industry Science & Resources
Chairman
Mr Robert Trenberth
Consultant
Ernst & Young
Sector Coordinator
Tel (03) 9288 8252
Email [email protected]
Dr Ian Sare
CSIRO Manufacturing Science & Technology
Tel (03) 9545 2787
Email [email protected]
a p p e n d i x e s
c s i r o a n n u a l
[152]
r e p o r t
0 0 – 0 1
Measurement Standards Sector
Chairman
Mr Chris J Whitworth
Alstom Power Ltd
Tel (02) 8870 6077
Email [email protected]
Members
Dr Steven Anderson
Managing Director
Southern Pathology
Dr Sandra Hart
General Manager
Australian Government Analytical Laboratories
Mr Anthony Russell
Chief Executive Officer
National Association of Testing Authorities Australia
Mr Ross Wraight
Chief Executive
Standards Australia
Sector Coordinator
Dr Barry Inglis
CSIRO Telecommunications & Industrial Physics
Tel (02) 9413 7460
Email [email protected]
Mr Alex Baitch
Manager, Network Capability
Integral Energy
Dr Judith Bennett
Executive Officer
National Standards Commission
Phar maceuticals and Human
Health Sector
Mr Paul Brady
Officer in Charge
Support Equipment Logistic Management Unit
Department of Defence
Mr Tony Craven
Executive Director
JAS-ANZ
Chairman
Dr Ian Pitman
Scientific Director
FH Faulding & Co Limited
Tel (08) 8209 2675
Email [email protected]
Dr Andreas Dubs
General Manager, Business Environment Branch
Business Competitiveness Division
Department of Industry, Science & Resources
Members
Mr Brian Frizell
Retired
Dr John D Flack
Director, Pharmaceutical R&D
AMRAD Operations Pty Ltd
Mr James Galloway
Assistant Director, Technology & Regulations
Australian Electrical & Electronic Manufacturers
Mr John Gerard
Director
Gerard Industries Pty Ltd
Mr Malcolm Eppingstall
Consultant
Professor Ian Gust
Director of Research & Development
CSL Ltd
Ms Patricia Kelly
Head, Services & Emerging Industries Division
Department of Industry, Science & Resources
c s i r o
a n n u a l
a p p e n d i x e s
r e p o r t 0 0 - 0 1
[153]
Dr Graham Mitchell
Principal
Foursight Associates Pty Ltd
Dr Bob Frater, AO
Vice President, Innovation
ResMed
Dr Hugh Niall
Chief Executive Officer
Biota Holdings Ltd
Professor Kwok-Yung Lo
Academia Sinica
Professor Peter McCulloch
Director, Physics Department
University of Tasmania
Mr Graham Thurston
Secretary
Australian Diagnostic Manufacturers Association
Dr Des Williams,
School of Pharmaceuticals, Molecular & Biological
Sciences
University of South Australia
Professor John R Zalcberg
Director, Division of Haematology & Med Oncology
Peter MacCallum Cancer Institute
Sector Coordinator
Professor Karl Menten
Director
Max-Planck Institute fur Radioastronomie
Dr Stephen Rotheram
Managing Director Networks
Cable & Wireless Optus
Dr Elaine Sadler
School of Physics
University of Sydney
Dr Ron Sandland
Deputy Chief Executive
CSIRO
Professor Richard Head
CSIRO Health Sciences & Nutrition
Tel (08) 8303 8865
Email [email protected]
Sector Coordinator
Dr Ron Ekers
CSIRO Australia Telescope National Facility
Tel (02) 9372 4300
Email [email protected]
Radio Astronomy Sector
Chairman
Professor Russell Cannon
Anglo-Australian Observatory
Ser vice Sector
Tel (02) 9372 4800
Email [email protected]
Chairman
Members
Ms Judith King
Business Advisor and Company Director
Professor Matthew Bailes
Director
Swinburne University of Technology
Tel (03) 9457 1534
Email j[email protected]
Dr Brian Boyle
Director
Anglo-Australian Observatory
a p p e n d i x e s
c s i r o a n n u a l
[154]
r e p o r t
0 0 – 0 1
Members
Sector Coordinator
Mr Steve Armstrong
National Product Development Manager, Retail
Fujitsu Australia Ltd
Dr Murray Cameron
CSIRO Mathematical & Information Sciences
Tel (02) 9325 3203
Email [email protected]
Mr Garry Campbell
General Manager
Information Technology Services
Coles Myer Pty Ltd
Minerals and Energy
Industries >>
Mr John Craven
Managing Director
Craven Innovation Corporation
Energy Sector
Mr Jeff Floyd
Chief Executive
AAA Tourism Pty Ltd
Chairman
Mr Peter Laver
Chairman
Ceramic Fuel Cells Ltd
Mrs Margaret Gibson
Partner
PriceWaterhouseCoopers
Tel (03) 9820 2985
Email [email protected]
Ms Carmel Gray
General Manager Information Technology
Suncorp Metway
Mr Peter Morris
Acting General Manager, Service Industries
Coordination B
Department of Industry, Science & Resources
Dr John Primrose
Senior Medical Advisor, Health Care Evaluation
Department of Health & Family Services
Mr Victor Skladnev
Managing Director
Polartechnics
Members
Ms Margaret Beardow
Principal
Benchmark Economics
Mr Robin Bryant
General Manager, Energy Minerals Branch
Department of Industry, Science & Resources
Mr David Cain
Chief Consultant, Energy
Rio Tinto Technical Services
Dr Mary Dale
Director, Energy Innovation Division
Officer of Energy (WA)
Mr Robert Stribling
Head of Market Risk
ANZ Banking Group
Mr Greg Evans
Policy Manager
Australian Gas Association
Dr Barry Westlake
CEO & Managing Director
Geophysical Technology Ltd
Mr Allan Gillespie
Consultant
c s i r o
a n n u a l
a p p e n d i x e s
r e p o r t 0 0 - 0 1
[155]
Mr Philip Harrington
Senior Executive Manager, Sustainable Energy Group
Australian Greenhouse Office
Mr Keith Orchison
Managing Director
ESAA Ltd
Mr Dick Davies
Chief Executive Officer
Australian Mineral Industries Research Association
International Ltd
Dr Geoff Dickie
Executive Director, Resource Development Division
Department of Mines & Energy (QLD)
Mr Bruce Robertson
Chief Mining Engineer
Shell Coal Pty Ltd
Mr Phillip Harman
Manager, Discovery Technology
BHP Minerals Discovery
Dr John Sligar
Director
Sligar & Associates Pty Ltd
Mr Jeff Harris
General Manager, Coal & Minerals Division
Department of Industry, Science & Resources
Sector Coordinator
Mr Jim Torlach
State Mining Engineer
Department of Minerals & Energy (WA)
Dr John Wright
CSIRO Energy Technology
Tel (02) 9490 8610
Email [email protected]
Mr Mark Woffenden
Chief Executive Officer
Murdoch University
Mineral Exploration and Mining
Sector
Sector Coordinator
Dr John Read
CSIRO Exploration & Mining
Tel (07) 3327 4460
Email [email protected]
Chairman
Mr Andrew Michelmore
Executive General Manager, Business Strategy &
Development
WMC Resources Ltd
Mineral Processing and Metal
Production Sector
Tel (03) 9685 6380
Email [email protected]
Chairman
Members
Mr Alan Broome
Managing Director
AMP Control Pty Ltd
Dr Ray Shaw
General Manager, Technology Support
Office of the Chief Technologist
Rio Tinto Technology
Mr Alan Castleman
Chairman
Australian Unity Ltd
Tel (03) 9242 3325
Email [email protected]
Mr Mark Cutifani
Managing Director
Sons of Gwalia
a p p e n d i x e s
c s i r o a n n u a l
[156]
r e p o r t
0 0 - 0 1
Members
Dr Richard Aldous
Executive General Manager, Exploration & Development
Iluka Resources Ltd
Mr Roy Ames
Consultant
Dr Bob Watts
Chief Scientist
BHP Billiton
Sector Coordinator
Dr Rod Hill
CSIRO Minerals
Tel (03) 9545 8600
Email [email protected]
Mr Stephen Barnett
Group Manager, Technology & HSEQ
QNI Pty Ltd
Mr David Coutts
Executive Director
Australian Aluminium Council
Petroleum Sector
Mr Dick Davies
Chief Executive Officer
Australian Mineral Industries Research Association
International Ltd
Mr Bernard Wheelehan
Company Director
Chairman
Mr John den Dryver
Executive General Manager, Technical
Normandy Mining Ltd
Tel (03) 9421 4343
Email [email protected]
Members
Mr Bob Gannon
Head, Minerals Task Force
Department of State Development (QLD)
Mr Ian Lawrence
Lawrence Consultants Pty Ltd
Mr Dave Agostini
Agostini Consulting Pty Ltd
Mr Michael Frost
General Manager, Exploration
Santos Ltd
Mr John Hartwell
Head of Petroleum & Electricity Division
Department of Industry, Science & Resources
Ms Elizabeth Lewis-Gray
Executive Director
Gekko Systems Pty Ltd
Mr John Hebberger
Manager, Exploration & Earth Science
West Australian Petroleum Pty Ltd
Professor Malcolm Richmond
Graduate School of Business
Curtin University
Dr Les Rymer
General Manager, Minerals Development Branch
Department of Industry, Science & Resources
Mr David Sutherland
General Manager, Technical Services
Nabalco Pty Ltd
c s i r o
Mr Doug Hodson
Well Construction Manager
Woodside Energy Ltd
Mr Leif Larsen
General Manager
Schlumberger Oilfield Australia Pty Ltd
Mr Rob Male
Principal Development Engineer
Woodside Energy Ltd
a n n u a l
a p p e n d i x e s
r e p o r t 0 0 - 0 1
[157]
Mr Kees Van Gelder
Principal Development Engineer, Technology,
Woodside Offshore Petroleum Pty Ltd
Mr Ian Thompson
First Assistant Secretary
National Resources Management Policy Division
Agriculture, Fisheries & Forestry Australia
Sector Coordinator
Mr Ian Woods
AMP
Dr Adrian Williams
CSIRO Petroleum Resources
Tel (03) 9259 6889
Email [email protected]
Sector Coordinator
Dr Brian Walker
CSIRO Sustainable Ecosystems
Environment and Natural
Resources >>
Tel (02) 6242 1740
Email [email protected]
Biodiversity Sector
Climate and Atmosphere Sector
Chairman
Chairman
Ms Leith Boully
Farmer
Mr Oleg Morozow
Group Manager, Environment
Santos Ltd
Email [email protected]
Tel (08) 8218 5275
Email [email protected]
Members
Ms Evelyn Crawford
Manager
Aboriginal Cultural Heritage
Members
Mr Ian Carruthers
Senior Executive Manager, Greenhouse Policy Group
Australian Greenhouse Office
Mr Stephen Hunter
Head, Biodiversity
Environment Australia
Dr Stephen Corbett
Manager, Environmental Health
NSW Health Department
Mr Ian Kennedy
Director
Ian Kennedy & Associates
Mr Doug Gauntlett
Retired
Mr Michael McFarlane
Farmer/Land Manager
Mr Mark McKenzie
Road Service Delivery Manager
National Roads & Motorists Association
Dr Ray Nias
Director of Conservation
World Wide Fund for Nature
Mr Michael Rae
Manager, Sustainable Development
World Wide Fund for Nature
Professor Henry Nix
Centre for Resource & Environmental Studies
Australian National University
Dr Peter Scaife
Director, Centre for Sustainable Technology
University of Newcastle
a p p e n d i x e s
c s i r o a n n u a l
[158]
r e p o r t
0 0 - 0 1
Mr Robert Stribling
Head of Market Risk
ANZ Banking Group
Mr Denis Flett
Chief Executive
Goulburn-Murray Water
Dr Roslyn Taplin
Principal Analyst
Acil Consulting
Dr Graeme Robertson
Chief Executive Officer
Agriculture (WA)
Ms Kathryn Tayles
General Manager, Environmental Policy
Rio Tinto Ltd
Sector Coordinator
Dr Graeme Pearman
CSIRO Atmospheric Research
Tel (03) 9239 4650
Email [email protected]
Mr John Wilson
Chief Executive Officer
Indigenous Land Corporation
Mr Bernard Wonder
Executive Director
Agriculture, Fisheries & Forestry Australia
Land and Water Sector
Chairman
Sector Coordinator
Dr John Langford
Executive Director
Water Services Association of Australia
Dr Graham Harris
CSIRO Land & Water
Tel (02) 6246 5621
Email [email protected]
Tel (03) 9606 0678
Email [email protected]
Members
Marine Sector
Mr Donald Blackmore
Chief Executive
Murray-Darling Basin Commission
Chairman
Mr George Kailis
Director
MG Kailis Group
Mr Andrew Campbell
Executive Director
Land & Water Resources R&D Corporation
Tel (08) 9239 9239
Email [email protected]
Mr John Corrigan
Chief Executive
Filtra Ltd
Members
Dr Wendy Craik
Chief Executive Officer
Earth Sanctuaries Ltd
Mr Bernard Bowen
Chairman
Environment Protection Authority (WA)
Ms Rhondda Dickson
Assistant Secretary, Sustainable Landscapes Branch
Environment Australia
Dr Geoff Love
Deputy Director, Services
Bureau of Meteorology
Mr Jock Douglas AO
Pastoralist
Mr Ted Loveday
President
Queensland Commercial Fishermens Organisation
c s i r o
a n n u a l
a p p e n d i x e s
r e p o r t 0 0 - 0 1
[159]
Mr Rob Male
Principal Development Engineer
Woodside Energy Ltd
Dr Anthony Gregson
Farmer
Mr Michael Hedditch
Executive Director
Rice Growers Association of Australia
Professor Helene Marsh
Professor of Environmental Science
James Cook University
Mr Chris Henderson
Farmer
Dr Conall O’Connell
First Assistant Secretary, Marine Group
Environment Australia
Professor Chris Hudson
Research & Development Director
Goodman Fielder Ltd
Dr Nicholas Schofield
Program Manager, Water Resources,
Land & Water Resources R&D Corporation
Professor Emeritus John Lovett
Managing Director
Grains R&D Corporation
Mr Sandy Wood Meredith
Managing Director
Wood Fisheries Pty Ltd
Professor Don Marshall
Director, Plant Breeding Institute
University of Sydney
Mr Peter Yuile
Deputy Secretary
Department of Transport & Regional Services
Mr Douglas Rathbone
Chief Executive
Nufarm Ltd
Sector Coordinator
Mr Brendan James Stewart
President
Grains Council of Australia
Dr Nan Bray
CSIRO Marine Research
Tel (03) 6232 5212
Email [email protected]
Sector Coordinator
Agribusiness Industries >>
Field Crops Sector
Chairman
Dr Jim Peacock, AC
CSIRO Plant Industry
Tel (02) 6246 5250
Email [email protected]
Food Processing Sector
Mr Trevor Flügge, AO
Chairman
AWB Ltd
Chairman
Tel (03) 9209 2011
Email [email protected]
Mr Steve Marshall
Group Director Corporate Technology
Goodman Fielder Ltd
Members
Tel
0438011409
Mr Harry Bonanno
Chairman
Australian Cane Growers Council
a p p e n d i x e s
c s i r o a n n u a l
[160]
r e p o r t
0 0 - 0 1
Members
Forestr y, Wood and Paper
Industries Sector
Dr Geoff Annison
Scientific & Technical Director
Australian Food Council
Chairman
Ms Robyn Charlwood
Executive Director, Victorian Division
National Heart Foundation
Mr Ronald Adams
Managing Director
Sotico Pty Ltd
Dr Alan Grant
Vice President, Technology Asia/Pacific
Kraft Foods Ltd
Tel (08) 9351 6488
Email [email protected]
Members
Dr Marion Healy
Chief Scientist
Australia New Zealand Food Authority
Dr James Bonham
Product Development Manager, (Australian Paper)
Paperlinx Ltd
Dr Jan Mahoney
Program Manager, Agriculture Industries
Department of Natural Resources (VIC)
Mr Hans Sidler
General Manager Petrol
Woolworths Supermarkets
Dr David Brand
Deputy Chief Executive
State Forests (NSW)
Dr Tony Flowers
Development Manager (Australia)
Fletcher Challenge Paper
Mr Dan Southee
Scientific Liaison Officer
Nestle Australia Ltd
Mr Kevin J Lyngcoln
Chief Executive Officer
Plywood Association of Australia
Mr Tony Wharton
Chief Executive Officer
Q-Meat
Mr Ian Millard
General Manager
Forestry SA
Mr Robert Wotzak
Technical Development Director
Arnotts Biscuits Ltd
Ms Vanessa Ranken
Company Director
Egaline Nursery
Sector Coordinator
Mr Robert Rawson
General Manager, Forest Industries
Department of Agriculture, Fisheries & Forestry Australia
Mr John Buhot
Food Science Australia
Mr Evan Rolley
Managing Director
Forestry Tasmania
Tel (07) 3214 2028
Email [email protected]
Mr Geoff Sanderson
Managing Director
Ausply Pty Ltd
c s i r o
a n n u a l
a p p e n d i x e s
r e p o r t 0 0 - 0 1
[161]
Mr James Witham
Managing Director
Treecorp Pty Ltd
Mr Rob Robson
Managing Director
Harvest FreshCuts Pty Ltd
Mr Peter Zed
National Resource Manager
CSR Timber Products
Sector Coordinator
Sector Coordinator
Tel (08) 8303 8626
Email [email protected]
Dr Nigel Scott
CSIRO Plant Industry
Dr Glen Kile
CSIRO Forestry & Forest Products
Tel (02) 6281 8314
Email [email protected]
Meat, Dair y and Aquaculture
Sector
Horticulture Sector
Chairman
Mr John Keniry
Chairman
Ridley Corporation Ltd
Chairman
Mr David Pullar
David Pullar & Associates
Tel (02) 8227 6122
Email [email protected]
Tel (03) 9415 1533
Email [email protected]
Members
Members
Mrs Teresa Allen
Self-employed, Producer
Mr Laurence Ah Toy
Director
Koolpinyah Station Pty Ltd
Mr Gordon French
Queensland Dairy Farmers Organisation
Mr Phillip Fitch
Director
New Industries Enterprise Competitiveness
Agriculture, Fisheries & Forestry Australia
Mr Robin Hart AM
Chairman
Kerwee Pastoral Company
Mr Phillip Laffer
Director of Viticulture & Winemaking
Orlando-Wyndham Pty Ltd
Dr Peter Holdsworth
Director Scientific & Regulatory Affairs (Animal Health)
AVCARE
Mr Brian Newman
Executive Director
Ausveg Board
Mr Pheroze Jungalwalla
Manager R&D
Tassal Ltd
Mr Peter Pokorny
General Manager, Fresh Foods
Woolworths Ltd
Dr Rod Kater
Chief Medical Officer
AMP Life Ltd
Dr Gardner Murray
Consultant
a p p e n d i x e s
c s i r o a n n u a l
[162]
r e p o r t
0 0 - 0 1
Sector Coordinator
Mr Peter Rea
Manager, Textile Industries
Department of State & Regional Development (VIC)
Mr Shaun Coffey
CSIRO Livestock Industries
Tel (07) 3214 2999
Email [email protected]
Mr Colin Sleep
Portfolio Manager (Rural)
National Mutual Funds Management
Textiles, Clothing and Footwear
Sector
Mr Brian van Rooyen
Managing Director
Australian Country Spinners
Chairman
Associate Professor Andrew Vizard
Veterinary Clinical Centre
University of Melbourne
Mr John Blood
Textile & Garment Consultant
Tel (03) 9282 9685
Email [email protected]
Sector Coordinator
Dr Peter Gordon
CSIRO Textile & Fibre Technology
Tel (03) 5246 4104
Email [email protected]
Members
Mr David Anthony
Chief Operating Officer
Auscott
Mr David Boyd
Managing Director
Clyde Agriculture Ltd
Mr Trevor Dawson
Managing Director
Rocklea Spinning Mills Pty Ltd
Mr John Dean
General Manager, Industry Contact & Policy Teams
Department of Industry, Science & Resources
Mr Guy Fitzhardinge
Livestock Producer
Thring Pastoral Company
Ms Collette Garnsey
General Manager, Buying
David Jones Ltd
Mr Lindsay Packer
Managing Director
Packer Tanning
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Appendix 2
Cooperative Research Centres Program
The Cooperative Research Centres (CRC) Program supports collaborative research between industry, Commonwealth
and State Government agencies, universities and other research providers such as CSIRO.
At 30 June 2001 CSIRO was a core participant in 44 CRCs still in operation. The Organisation makes a major
contribution to the Program through its experience in collaborating with industry and in applying its research
management skills.
Full details of CRC activities are available through their annual reports and publications and from the Internet on
http://www.isr.gov.au/crc/index.html
Cooperative Research
Centres in which CSIRO was
a participant 2000-01 >>
Infor mation and Communication
Technology
Advanced Computational Systems
(http://acsys.anu.edu.au)
Australian Telecommunications
Manufacturing Technology
(http://www.arcrc.com)
Bioproducts
Enterprise Distributed Systems Technology
(http://www.botany.unimelb.edu.au/labs/crc/CRC.html)
(http://www.dstc.edu.au)
CAST Metals Manufacturing
Satellite Systems
(http://www.cast.crc.org.au)
(http://www.crcss.csiro.au)
Intelligent Manufacturing Systems and Technologies
(http://www.crcimst.com.au/)
Mining and Energy
International Food Manufacture
AJ Parker CRC for Hydrometallurgy
(http://www.foodpack.crc.org.au)
(http://www.parkercentre.crc.org.au)
Microtechnology
Australian Mineral Exploration
(http://www.microtechnologycrc.com/)
(http://www.crcamet.mq.edu.au)
Polymers
Australian Petroleum CRC
(http://www.crcp.com.au)
(http://www.apcrc.com.au)
Welded Structures
Black Coal Utilisation
(http://www.crcws.com.au)
(http://www.newcastel.edu.au/department/black_
coal_crc/)
Clean Power from Lignite
(http://www.cleanpower.com.au)
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GK Williams CRC for Extractive Metallurgy
Freshwater Ecology
(http://proceng1.chemeng.unimelb.edu.au/gkw.html)
(http://enterprise.canberra.edu.au/WWW/wwwcrcfe.nsf)
Landscape Evolution and Mineral Exploration
Technologies
Sustainable Development of Tropical Savannas
(http://leme.anu.edu.au/)
(http://savanna.ntu.edu.au)
Tropical Rainforest Ecology and Management
Ag riculture and Rural Based
Manufacturing
(http://www.rainforest-crc.jcu.edu.au)
Waste Management and Pollution Control
(http://www.crcwmpc.com.au)
Aquaculture
Water Quality and Treatment
(http://www.aquacrc.uts.edu.au/)
(http://www.waterquality.crc.org.au/)
Australian Cotton CRC
Weed Management Systems
(http://www.cotton.pi.csiro.au)
(http://www.waite.adelaide.edu.au/CRCWMS/)
Cattle and Beef Quality
Coastal Zone, Estuary and Waterway Management
(http://www.beef.crc.org.au)
(http://www.coastal.crc.org.au)
Premium Quality Wool
Greenhouse Accounting
(http://woolcrc.une.edu.au)
(http://www.greenhouse.crc.org.au/)
Quality Wheat Products and Processes
(http://www.wheat-research.com.au)
Sustainable Rice Production
Medical Science and Technology
(http://www.csu.edu.au/faculty/sciag/crcr/)
Cellular Growth Factors
(http://www.ludwig.edu.au/crc-cgf)
Sustainable Sugar Production
(http://www-sugar.jcu.edu.au)
Diagnostic Technologies
(http://www.crc.sci.qut.edu.au/cdt.html)
Sustainable Production Forestry
(http://www.forestry.crc.org.au/)
Eye Research and Technology
(http://www.unsw.edu.au/clients/crcert/CRCERT01.HTM)
Tropical Plant Protection
(http://www.tpp.uq.edu.au)
Tissue Growth and Repair
(http://www.crc-tgr.edu.au/)
Viticulture
(http://www.winetitles.com.au/crcv/)
Vaccine Technology
(http://www.crc-vt.qimr.edu.au)
Environment
Antarctica and the Southern Ocean
(http://www.antcrc.utas.edu.au)
Biological Control of Pest Animals
(http://www.pestanimal.crc.org.au)
Catchment Hydrology
(http://www.catchment.crc.org.au)
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Appendix 3
Statutory Reporting Requirements
Commonwealth Authorities and Companies Act 1997 >>
The Commonwealth Authorities and Companies Act 1997 (Cth) (the ‘CAC Act’) imposes core reporting requirements
on Commonwealth authorities.
It replaces Part XI of the Audit Act 1901 (Cth) under which CSIRO previously had reporting obligations and can
be found on the Internet at http://www.austlii.edu.au/au/legis/cth/consol_act/caaca1997387/
Section 9 of the CAC Act requires directors of a
Commonwealth Authority to prepare an annual report
in accordance with Schedule 1 of the CAC Act for each
financial year and give this to the responsible Minister
by 15 October each year (unless another date is
approved). Schedule 1 of the CAC Act requires the
annual report of a Commonwealth Authority to contain:
1. a report of operations prepared in accordance with
the Financial Reporting Requirements (otherwise
known as the Finance Ministers Orders or FMOs);
1. Report of Operations >>
The Board Members of CSIRO are also responsible
under s. 9 of the CAC Act for the preparation and
content of the report of operations in accordance with
FMOs. Appendix A of the FMOs specifies the
requirements for the report of operations required to
be prepared. The report of operations must include:
2. financial statements prepared in accordance with the
FMOs which give a true and fair view of the matters
dealt with in the Orders; and
3. a report by the Auditor-General’s Report on those
financial statements in which the Auditor-General
must provide his opinion as to whether the financial
statements have been prepared in accordance with
the FMOs and give a true and fair view of the
matters required by those Orders.
The FMOs are located at
http://www.dofa.gov.au/ace/docs/fmos.rtf
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Reporting Requirements under Schedule 1, FMOs
Page
Resolution of report of operations by Directors (that is, Board Members).
iv
State CSIRO’s enabling legislation and CSIRO’s objectives and function as set out in
that legislation, and include the name of CSIRO’s Minister(s) during the relevant
reporting period, including the current Minister.
5
Outline the organisational structure and location of major activities and functions.
Review operations and future prospects.
9-16
17-80, 88-93
Provide particulars of judicial decisions or reviews by outside bodies which may have
a significant impact on the operations of CSIRO.
NA
Report on the effects of Ministerial directions or general policies of the Government
by the Minister, and any reason for non-compliance.
NA
Details of Board Members, number of Board meetings and attendance record.
6, 142
Details of the Audit Committee, number of Audit Committee meetings and attendance
record.
95, 142
122
Details of indemnities and insurance for officers.
Include any other matters required to be included in the Annual Report by the
Science and Industry Research Act 1949 (SIR Act) or other legislation.
See below
Reporting Requirements under the SIR Act
Section 51 SIR Act specifies that the Annual Report must set out the following:
Page
A statement of the policies of the Organisation in relation to the carrying out of the
scientific research of the Organisation that were current at the beginning of the year.
1-2, 17-80
A description of any developments in those policies that occurred during the year.
17-80
Any determination made by the Minister during the year which deal with a specific
function of the Organisation to carry out scientific research for reasons other than
those listed in s. 9(1)(a)(i) - (iii) SIR Act.
5
Any written direction or guideline given by the Minister to the Board dealing with
the functions and powers of the Board.
5
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2. Financial Statements >>
The Commonwealth Authorities and Companies Orders
(Amendment) 1998 amends the FMOs by inserting
a new Order 5. Order 5 provides:
Schedule 2 of these Orders specifies the requirements for
the financial statements required to be prepared
by the directors of a Commonwealth Authority and
included in its annual report under clause 1 of
Schedule 1 of the CAC Act.
The FMOs which set out the financial reporting
requirements for CAC bodies are located at:
http://www.dofa.gov.au/Pubs/fmab/fmos_cacs.pdf
The Requirements and Guidance for the Preparation of
Financial Statements of Commonwealth Agencies and
Authorities are located at:
http://www.dofa.gov.au/ace/docs/fmos.doc
Schedule 2 to the FMOs under CAC Act requires the
following information to be included in CSIRO’s financial
statements:
Reporting Requirements under Schedule 2, FMOs
Page
Statement of Financial Performance
112
Statement of Financial Position
113
Statement of Cash Flows
114
Schedule of Commitments
115
Schedule of Contingencies
116
3. Auditor-General’s Report >>
The Auditor-General’s Report on CSIRO’s financial statements is on page 109-110
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Appendix 4
Functions and powers of CSIRO
Functions of the
Organisation >>
(1) The functions of the Organisation are:
(a) to carry out scientific research for any of the
following purposes:
(i)
assisting Australian industry;
(ii) furthering the interests of the Australian
community;
(iii) contributing to the achievement of Australian
national objectives or the performance
of the national and international
responsibilities of the Commonwealth;
(iv) any other purpose determined by the
Minister;
(b) to encourage or facilitate the application
or utilisation of the results of such research;
(ba) to encourage or facilitate the application
or utilisation of the results of any other
scientific research;
(bb) to carry out services, and make available
facilities, in relation to science;
(c) to act as a means of liaison between Australia
and other countries in matters connected with
scientific research;
(f) to recognise associations of persons engaged in
industry for the purpose of carrying out industrial
scientific research and to cooperate with, and
make grants to, such associations;
(g) to establish, develop and maintain standards
of measurement of physical quantities, and in
relation to those standards:
(i)
(ii) to promote, and participate in, the
development of calibration with respect
to them; and
(iii) to take any other action with respect to
them that the Chief Executive determines;
(h) to collect, interpret and disseminate information
relating to scientific and technical matters; and
(i)
(a) treat the functions referred to in paragraphs
(1) (a) and (b) as its primary functions; and
(b) treat the other functions referred to in
sub-section (1) as its secondary functions.
(e) to establish and award fellowships and
studentships for research, and to make grants
in aid of research, for a purpose referred to
in paragraph (a);
a n n u a l
to publish scientific and technical reports,
periodicals and papers.
(2) The Organisation shall:
(d) to train, and to assist in the training of, research
workers in the field of science and to cooperate
with tertiary education institutions in relation
to education in that field;
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to promote their use;
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Powers of the Organisation
(1) The Organisation has power to do all things
necessary or convenient to be done for or in
connection with the performance of its functions
and, in particular, may:
(a) arrange for scientific research or other work
to be undertaken, on behalf of the Organisation,
by any person or body;
(b) join in the formation of a partnership
or company;
(c) make available to a person, on such conditions
and on payment of such fees or royalties,
or otherwise, as the Chief Executive determines,
a discovery, invention or improvement to the
property of the Organisation;
(3) An approval under sub-section (2):
(a) may be of general application or may relate to
a particular company or proposed company; and
(b) may be given subject to conditions or restrictions
set out in the instrument of approval;
(4) Where the Organisation commences to hold a
controlling interest in a company, the Minister shall:
(a) cause to be prepared a statement setting out
particulars of, and the reasons for, the holding
of that controlling interest; and
(b) cause a copy of the statement to be laid before
each House of the Parliament within 15 sitting
days of that House after:
(i)
(d) pay to officers, or to persons undertaking work
on behalf of the Organisation, such bonuses
as the Chief Executive, with the approval of the
Minister, determines in respect of discoveries
or inventions made by them; and
(e) charge such fees, and agree to such conditions,
as the Chief Executive determines for research
and other services carried out or facilities made
available by the Organisation at the request
of any person.
(2) The Organisation shall not, without the written
approval of the Minister, hold a controlling interest
in a company.
(ii) if the Minister is of the opinion that the
disclosure of the holding of the controlling
interest would affect adversely the
commercial interests of the Organisation,
the Minister ceases to be of that opinion.
(5) Nothing is invalid on the ground that the
Organisation has failed to comply with
sub-section (2).
(6) Where the Organisation holds a controlling interest
in a company, the Organisation shall ensure that the
company does not do any act or thing that, if done
by the Organisation, would not be within the
functions of the Organisation.
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the Organisation commenced to hold that
controlling interest; or
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Appendix 5
Administrative Law Reporting Requirements
Freedom of infor mation
Categories of documents
The Freedom of Information Act 1982 (‘the Act’) provides
the public with a general right of access to documents
held by CSIRO and Commonwealth Agencies. This
general right is limited only by exceptions needed to
protect essential public interests or the privacy and
business affairs of those who give information to the
Commonwealth.
CSIRO holds the following categories of documents:
In the year to 30 June 2001, CSIRO received 20 requests
under the Act.
One application was made under subsection 29(1) of
the Administrative Appeals Tribunal Act 1975 (‘the Act’)
for a review by Administrative Appeals Tribunal of a
decision taken under the Freedom of Information Act.
This decision was upheld.
(1) Corporate records: containing information of
corporate and residual value such as financial
management and administration, buildings and
property, personnel and industrial relations and
scientific and industrial research.
(2) Work group records: these are records generated
within a work group such as research records and
materials created in the course of scientific and
technical investigations including:
• raw data;
• project databases;
• observational and experimental data; and
• field and laboratory notebooks.
Section 8 Statement
Section 8 of the Act requires agencies to publish certain
information concerning their functions and documents.
The following information is presented by CSIRO in
accordance with the requirements of that section.
CSIRO’s function and powers
Refer Appendix 4 of this Annual Report.
Consultative procedures
Valuable input from industry and other users and
stakeholders into the identification of strategic research
needs and the formulation of policy and administration
is obtained through formal advisory and consultative
committees as well as through receipt of
representations from industry, scientific and employee
groups. Membership of Sector Advisory Committees
is listed in Appendix 1.
c s i r o
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(3) Personal records: The following CSIRO documents
are customarily made available to the public free
of charge: policy circulars; information circulars;
staff circulars; CoResearch (staff newspaper);
film catalogues; lists of saleable publications;
information service leaflets issued by Divisions
on a wide range of technical subjects attracting
frequent inquiries from the general public;
conditions of CSIRO post-doctoral awards; press
releases; information on careers in CSIRO; and
school project material.
The following CSIRO documents are available for
purchase by the public by contacting CSIRO, Limestone
Avenue, Campbell, ACT 2602 or CSIRO Publishing,
150 Oxford Street, Collingwood, VIC 3066: Scientific and
technical publications including magazines, journals and
books as well as CSIRO administrative manuals. A list
of administrative manuals is available from the Freedom
of Information (FOI) Coordinator.
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Archives and disposal
arrangements for documents
Privacy
CSIRO maintains an archives collection in Canberra that
has records dating from the establishment in 1926 of
the Council for Science and Industrial Research, the
original predecessor of CSIRO. Certain Australian
Archives Regional Offices also hold quantities of CSIRO
records. The disposal arrangements for CSIRO records
are made in accordance with the provisions of the
Archives Act 1983. Access to records over 30 years old
is provided in accordance with that Act.
• methods used to collect personal information;
• storage and security of personal information;
• notice of the existence of record systems;
• access by individuals to their own information;
and
• use of personal information and its disclosure
to third parties.
Facilities for access
Arrangements can be made for documents that are the
subject of FOI requests to be made available for
inspection at the CSIRO office nearest to the address
of the applicant.
FOI procedures and initial contact
points
A central Freedom of Information (FOI) Coordinator is
responsible for the receipt of requests, identification
of relevant CSIRO documents, consultation with CSIRO
authors and officers, determining access to the
documents and arranging internal review. Initial
enquiries should be made to:
FOI Coordinator
CSIRO
Limestone Avenue
CAMPBELL ACT 2601
The Act allows the Privacy Commissioner to investigate,
and report on, an act or practice that may be an
interference with the privacy of an individual.
During 2000-01 the Privacy Commissioner did not
undertake any investigations under s.36 of the
Privacy Act 1988 in relation to CSIRO.
Privacy Procedures and Initial Contact
Points
A central Privacy Coordinator manages CSIRO’s privacy
responsibilities.
Initial enquiries should be made to:
Privacy Coordinator
CSIRO
Limestone Avenue
CAMPBELL ACT 2601
or
PO Box 225
DICKSON ACT 2602
or
PO Box 225
DICKSON ACT 2602
Tel
The Privacy Act 1988 came into operation on 1 January
1989. The Act applies to both the Commonwealth and
ACT Governments and requires Departments and
Agencies to comply with certain Information Privacy
Principles (IPPs). They govern:
Tel
(02) 6276 6123
(02) 6276 6123
In accordance with the Freedom of Information Act 1982,
formal requests to CSIRO should be addressed to the
Chief Executive of CSIRO.
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The Administrative Decisions
(Judicial Review) Act
The Administrative Decisions (Judicial Review) Act 1977
(‘AD(JR) Act’) enables a person aggrieved by certain
classes of administrative decisions or actions taken by
Commonwealth agencies including CSIRO to challenge
these decisions in the Federal Court.
Section 13 of the AD(JR) Act gives a person aggrieved
by a decision the right to obtain a statement of the
reasons for the decision. This right exists independently
of the right to apply for a review of a decision.
The statement of reasons is to be in writing and is
to set out the findings on material questions of fact,
referring to the evidence or the material on which those
findings were based and giving the reasons for the
decision.
In the year to 30 June 2001, CSIRO received no requests
for statements of reason under the AD(JR) Act.
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Appendix 6
CSIRO Position on Gene Technology
CSIRO believes there is a window of great opportunity for Australia, its community and industries, based on research
in gene technologies. It gives us the potential to improve our health, create a safer and more secure food supply,
generate greater prosperity and attain a more sustainable environment. Our position on this issue is:
1. CSIRO will continue to play a valuable, ethical and
responsible role in Australian and international
efforts to develop beneficial new products and
processes from gene technology.
5. CSIRO sees safety as a top priority in gene
technology research. We set high internal biosafety
standards and comply with relevant Government
legislation and guidelines.
2. CSIRO will help to provide a clean, safe food supply,
novel materials and products and a sustainable
environment for all Australians through the use of
appropriate biotechnology including gene
technologies.
6. CSIRO is committed to the ethical, lawful, transparent
and accountable conduct of gene technology
research.
3. CSIRO recognises and respects public interest and
concerns on issues surrounding genetically modified
organisms. We will continue to consult with the
community, industry and government, listen to and
recognise their concerns, and help inform Australians
about gene technology. We recognise that values and
opinions about these issues may change over time.
7. CSIRO supports the responsible protection of
intellectual property rights in gene technologies
as a means to stimulate further public research
and innovation.
8. CSIRO undertakes to investigate both the benefits
and risks of gene technology research. We will help
to enhance Australia’s capability for environmental
risk assessment.
4. CSIRO helps Australian industries to be world
competitive in biotechnology and gene technology.
We will commercialise our research in the most
effective way in accord with our social responsibility,
and promote the growth of local biotechnology
companies. CSIRO will continue to conduct world
class research and train our scientists to the highest
standards.
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Appendix 7
Trust Funds
William McIlrath Fellowship
Trust Fund >>
FD McMaster Bequest Trust
Fund >>
In 1996 Ms Jennifer MacDiarmid was awarded a
postgraduate fellowship at the McMaster Laboratory,
Prospect to conduct research on cloning, gene
expression and analysis of proteins, excreted and
secreted by an important nematode parasite of the
small intestine of sheep.
The late Sir Frederick McMaster, a prominent New South
Wales grazier, bequeathed in his will a substantial
proportion of shares in his pastoral company to CSIRO on
the condition that the proceeds from their sale be used
to undertake research in agriculture or veterinary science.
This project has been completed with Ms MacDiarmid’s
submission of her PhD thesis in September 2000.
Of particular significance for future research and
development was her successful isolation and
characterisation of several novel antigens which are
the subject of a provisional patent application. She has
demonstrated that these antigens have potential as
vaccine candidates to protect sheep against the three
major gastro-intestinal parasites responsible for
economic losses in the industry.
Sir Ian McLennan
Achievement for Industry
Award >>
This year’s winner was Dr Tony Miller of CSIRO
Mathematical and Information Sciences for his skills
on the complex problems surrounding the optimal
design of spectacle lenses.
a n n u a l
Three Research Fellowships and six Visiting Fellowships
were awarded. For the former, the Fellow is actively
involved in a CSIRO research project for three to
12 months. For the latter, the Fellow undertakes to
review and make recommendations on a specific area
of research, or a program of public lectures and highlevel discussions on research policy and management,
or other activities approved by the selection committee.
The Ken and Yasuko Myer
Plant Science Research >>
Established in 1985 the Sir Ian McLennan Achievement
for Industry Award recognises outstanding contributions
by CSIRO scientists and engineers to national
development. The winning scientist/engineer receives
a medal and a grant of up to $15 000 to undertake
an overseas study visit appropriate to the achievement.
The company or organisation involved in the
development and/or marketing of the innovation
is presented with a plaque.
c s i r o
From this fund, nine Fellowships were awarded in
2000-01, totalling $110 505. They were given to support
eminent overseas scientists selected to work for
a period in CSIRO Divisions.
In June 1994 CSIRO Plant Industry received a bequest
of $1 million from the estate of the late Kenneth Myer
to establish a trust fund for plant science research.
The Board of Trustees established to manage the Fund
includes representatives from the Myer Family, industry
and CSIRO.
The Ken and Yasuko Myer Plant Science Research Fund
supports postdoctoral fellowships within CSIRO Plant
Industry. Current fellowships include research projects
directed towards innovative uses of lucerne to manage
water and nutrients in cropping systems in wet
landscapes, and a fellowship on genes to control
flowering.
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The David Rivett Memorial
Fund >>
The David Rivett Memorial Fund was established in
1961 to commemorate the life and work of the late
Sir David Rivett, formerly Chief Executive Officer and
subsequently Chairman of CSIR. The Fund is used to
finance a public lecture by a suitably distinguished
overseas scientist on current and significant new
research. Sir Walter Bodmer (Head of the Cancer and
Immunogenetics Laboratory, Institute of Molecular
Medicine, Oxford University) gave a public lecture titled
Cancer, a genetic disease of cells in Brisbane on
4th December, 2000.
Science and Industry
Endowment Fund >>
The Fund was established under the Science and
Industry Endowment Act 1926 with the Trustee of the
Fund being the CSIRO Chief Executive. No grants were
made during the year. Applications to the fund are
being sought in the second half of 2001.
Elwood and Hannah
Zimmerman Research Fund
Trust >>
The Trust was established in 1995 following a donation
of $400 000 from Elwood and Hannah Zimmerman.
This initial donation has since been matched dollar for
dollar by CSIRO. Elwood and Hannah Zimmerman also
contribute around $5 000 per year to the Trust. In
addition, $40 000 bequested to CSIRO from the Estate
of the late Mr Alan Cox was made available to the
Zimmerman Trust during the 1998-99 financial year;
this contribution was also matched by CSIRO.
The Governors of the Australian National Insect
Collection (ANIC) Fund, together with Dr Elwood
Zimmerman, are the Trustees of the Elwood and
Hannah Zimmerman Research Fund Trust.
During 2000-01 weevil research focussed on a contract
research project on Melanterius weevils used in
biological control of acacias in South Africa and on
studies of the relationships of the Australian weevil
fauna in a world context.
Australian Melanterius weevils introduced into South
Africa as biocontrol agents of invasive Australian
acacias were studied with the aim of determining their
precise identities and host specificity and of producing
an illustrated key to the species.
Results of studies into the phylogenetic relationships
of some of Australia’s endemic primitive weevil groups
were presented at a weevil symposium during the XXIth
International Congress of Entomology in Iguassu, Brazil.
Parts of this work were published in a special issue of
Invertebrate Taxonomy. These studies form vital
contributions to current international efforts of resolving
the higher classification of the weevils.
Work on Volume VII of the Australian Weevils
monograph series was continued.
The application of weevil systematics to a broader
ecological context in Australia was fostered by
promoting studies of weevil pollination of native cycads
and a postdoctoral project on the weevils pollinating
Australian nutmegs has been developed. Further
systematic and co-evolutionary projects on the
Australian cycad weevils are planned in collaboration
with local and overseas botanists.
A postdoctoral student from Japan, Dr Hiroaki Kojima,
commenced a two-year study of the Australian flower
weevils in July 2000 but had to terminate it after four
months due to a job offer at Kyushu University in
Japan. A joint paper on dryophthorine weevils was
written in its place. Other postdoctoral projects were
discussed with candidates in Argentina, Germany and
South Africa, as were sabbatical visits by weevils
specialists in Canada and South Africa.
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Australian National Wildlife
Collection Foundation >>
The Foundation was established in 1998 to promote the
charter and objectives of the Australian National Wildlife
Collection.
The collection contains a representative sample of the
Australian vertebrate fauna, covering bird species,
mammals, amphibians and reptile species. It contributes
to our understanding of biodiversity, and its
conservation. The collection provides an important
service to science and the community.
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Index
A
B
access to documents, 172
ACT Government, sponsorship, 1
addresses, 8, 13-16
Agribusiness Industries, 35, 64-75
committees, 160-3
outputs, 20, 24-5
see also individual sectors
Agriculture and Resource Management
Council of Australia and New Zealand
(ARMCANZ), 61
Agriculture and Rural Based Manufacturing CRC, 165
AIDS vaccine development, 4
aircraft
corrosion prediction, 43
hazardous volcanic ash, 60
Align 3D technology, 3, 37
aquaculture industry, 63
atomic mirrors, 44
Audit Committee, 95
see also external audit
see also internal audit
Australia Telescope Compact Array, 48
Australian Academic Research Network
(AARNet Pty Ltd), 101
Australian and New Zealand Environment and
Conservation Council (ANZECC), 61
Australian Coal Association Research Program
(ACARP), 52
Australian Electoral System, 101
Australian Geological Survey Organisation, 62
Australian Magnesium Corporation Ltd
(AMC), MOU, 43
Australian Quarantine and Inspection Service
(AQIS), 63
identification of risky imports, 71
Australian Taxation Office (ATO) project, 50
Australian Wool Innovation, 74
awards & honours, 1, 81-7
Axcess II, 3
Axon Instruments, 50
Backing Australia’s Ability, 2
BAE SYSTEMS, aircraft corrosion prediction, 43
barley
Barley Yellow Dwarf Virus (BYDV), 65
Barleyplus, 66
bees, introduction of Canadian leafcutter bees, 65
Biodiversity Sector, 57-8
Biolink, 58
Board
Audit Committee, 95
committees, 95
disclosure of interests, 95
ethical standards, 96
fraud control, 96
independent advice, 96
internal control, 96
membership, 6, 95
remuneration, 95
reporting requirements, 166-7
resolution, iv
risk management program, 96
role, 94
structure, 10
Built Environment Sector, 36-7
committees, 150
Bureau of Rural Sciences (BRS), 60
business & biodiversity, 57
business development, 90
C
Cable & Wireless Optus, sponsorship, 1
cashew improvement, 70
chairman
foreword, 1-2
medal, 85
Charter Pacific Corporation Ltd (CPC), 106
Chemicals & Plastics Sector, 38-9
committees, 151
Chief Executive
foreword, 3-4
special projects, 76-80
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Climate and Atmosphere Sector, 58-60
committees, 158-9
clothing, easycare garments, 74
see also Textile, Clothing & Footwear Sector
Commercial Information System (CIS), 102
commercialisation of technology, 2
committees
sector advisory committees, 150-63
see also Board
communication & education, 102-3
see also information sharing
consultative procedures, 171
contacts for enquiries, 103, 184
FOI, 172
privacy procedures, 172
control, internal control, 96
cooperation & relationship management, 90
Cooperative Research Centres (CRCs)
Program, 164-5
funding, 2
new centres, 37
corporate affairs
governance, 94
responsibilities, 10
cotton, improved varieties, 74
CREST project, 103
CSIRO Science Education Centres
(CSIROSECs), 103
customers
grievance procedures, 173
satisfaction, 33-4
services, 7
ECOmmodore, 3, 43
Ecotech Pty Ltd, 59-60
educational projects, 102
Energy Sector, 51-2
energy modelling, 52
energy services, 100
improvements to power stations, 52
special project, sustainable energy, 76
wind energy prediction, 52
enquiries, 103, 184
Environment & Natural Resources Sector, 35, 57-64
cheaper environmental land assessment, 72
committees, 158
effects of future population, 62
environmental management, 99-100
fuel cells, 52
outputs, 20, 23-4
power station waste ash, 52
see also Climate & Atmosphere Sector
Environment CRC, 165
ethical standards, 96
evaluation see planning & evaluation
external audit, 96
F
Face Identification and Capture (FIAC), 50
feedback, 8
Field Crops Sector, 64-6
committees, 160
finance, 100
economic dependence, 94
expenditure by sector, 29
external earnings, 29-30
financial statements, 108-49
reporting requirements, 168
funding
CRC program, 2
economic dependence, 94
special projects, 76
growth in income from intellectual property, 32-3
risk assessment & audit, 100-01
see also trust funds
D
Defence Science Technology Organisation,
aircraft corrosion prediction, 43
Dept of Health & Aged Care, health information, 50
developments since 30 June 2001, 107
Discovery Centre, 1
documents
access facilities, 172
archival & disposal arrangements, 172
categories of documents, 171
Double Helix Science club, 103
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I
fire
new facilities for research, 37
sustainable harvesting of firewood, 57
fisheries management, 63-4
Food Processing Sector, 66-7
committees, 160-1
Food Science Australia projects, 67
Forest and Wood Products Research &
Development Corporation (FWPRDC), 69
Forestry, Wood & Paper Industries Sector, 68-9
committees, 161-2
sustainable harvesting of firewood, 57
fraud control, 96
Freedom of Information (FOI), 171, 172
functions & powers, 5, 169-70
funding see finance
future directions, 88-93
industrial effluents, treatment, 43
Information & Communication Technologies
Sector, 40-1
committees, 151-2
CRC, 164
e-business tools, 101
e-CSIRO, 91
e-procurement, 101
eVote system, 101
Information Technology (IT) services, 101-2
outsourcing, 101
Internet Protocol (IP), 101
intranet, 102
information sharing, 102
InMag Pty Ltd, 44
input indicators, 26
Integrated Avionic Systems, 60
Integrated Manufactured Products Sector, 42-4
committees, 152
intellectual property services, 105
Intergovernmental Panel on Climate Change
(IPCC), 59
internal audit, 96
internal control, 96
international cooperation, 4
aquatic weeds, 58
Asian Gypsy Moth, 69
astronomy, 47-8
climate change, 59
telescope in Chile, 47
water & sediment quality, 61
wool processing mills, 75
ITS connect, 3
G
genetic modification
CSIRO position, 174
Flowering Switch Gene, 65
gene banks for macadamia diversity, 70
gene therapy, 46
GeneSTAR Marbling test, 72
genetic improvement of prawnstocks, 72
multi-divisional project, 2
special projects, a suite of genetic
engineering technologies, 79-80
Glass Earth, 4
greenhouse gas emissions, 43, 51, 69
grievance procedures, 173
H
health, data mining, 50
Heartlands, 78-9
Hepatitis B treatment, 4 46
highwall mining guidance system, 51
Horticulture Sector, 70-1
committees, 162
human resources management, 97
L
Land & Water Sector, 60-2
committees, 159
land
cheaper environmental land assessment, 72
management of grazing land, 72
special projects, integrated approach to
sustainable land management in the
Murray-Darling, 78-9
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legal & intellectual property, 105-6
legislation, enabling legislation, 1, 5
lens design for spectacles, 43
letter of transmittal, iii
litigation, 106
locations, 12
minerals & energy industries, 35, 53-6
committees, 155-6
development of Glass Earth, 4
outputs, 20, 22-3
Mining and Energy CRC, 164-5
highwall mining guidance system, 51
minister responsible, 5
mission, 92
mouse plague research, 65
Murray-Darling Basin Commission (MDBC), 60
national water reform, 61
M
Macquarie Island, conservation of marine
environment, 63
Malcolm McIntosh Memorial Lecture, 1
management arrangements, 93
Manufacturing Technology CRC, 164
manufacturing, information & service
industries, 35, 36-50
committees, 150-5
outputs, 20-2
see also individual sectors
Marcus Wallenberg Prize, 1, 81
Marine Sector, 62-4
committees, 159-60
projects, 4, 62-4
Measurement Standards Sector, 44
committees, 153
Meat, Dairy and Aquaculture Sector, 71-2
committees, 162-3
media
enquiries, 184
releases, 102
Medical Science and Technology CRC, 165
Members Australia Credit Union (MACU)
sponsorship, 1, 103
Memorandum of Understanding (MOU)
AMC Ltd, 43
telescope in Chile, 47
wool processing mills, 75
metis II, 102
Mineral Exploration & Mining Sector, 52-3
committees, 156
highwall mining guidance system, 51
Mineral Processing & Metal Production
Sector, 54-5
committees, 156-7
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N
National Museum of Australia, design of
Welcome Space, 41
National Oceans Office (NOO), 62
natural resources see management of the
environment & natural resources
NSW Sustainable Energy Authority, 4
O
Occupational Health & Safety (OH&S), 97-8
Office of Asset Sales & Information
Technology Outsourcing (OASITO), 101
Olympic Games, CSIRO involvement, 2
operational arrangements, 11
organising arrangements, 91
outcomes, 18, 20
outcome indicators, 26
see also individual sectors
outputs, 19-25
outputs & performance, 17-87
output indicators, 26
P
paper see Forestry, Wood & Paper Industries
Sector
parliaments, service to politicians, 102
patents see publications, reports & patents
performance, 8, 26-75
performance indicators, 27
Petroleum Sector, 55-6
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committees, 157-8
Pharmaceuticals & Human Health Sector, 45-6
committees, 153-4
planning & evaluation, 27
evaluation criteria, 27
strategic planning & evaluation, 104-5
Polymer Electrolyte Membrane Fuel Cell
(PEMFC) facility, 52
population, effects on environment & physical resources, 62
power stations
improving efficiency, 52
waste ash, 50
powers, 5
functions & powers, 169-70
prawns
genetic improvement of stocks, 72
Pondman software package, 72
protection, 72
Prime Minister’s Science Prize, 1, 4, 81
privacy, 172
property
Government Property Review, 2
property & security, 104-5
see also legal & intellectual property
Proteome Systems Limited (PSL), 50
publications, reports & patents, 31-3
purpose, 92
R
Radio Astronomy Sector, 47-8
committees, 154
special projects, advanced millimetre-wave
integrated circuits, 77
Relenza, 4, 46
reporting
administrative law reporting requirements, 171-3
statutory requirements, 166-8
reports see publications, reports & patents
research
adoption & impact, 35
outcomes
biodiversity sector, 57-8
built environment sector, 37
chemicals & plastics sector, 39
climate and atmosphere sector, 59-60
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energy sector, 51-2
food processing sector, 67
forestry, wood & paper industries sector, 68-9
horticulture sector, 70
information & communication technologies sector, 41
integrated manufactured products sector, 43-4
land & water sector, 60-1
marine sector, 62
measurement standards sector, 44-5
meat, dairy & aquaculture sector, 72
mineral exploration & mining sector, 53
mineral processing & metal production sector, 54-5
petroleum sector, 56
pharmaceuticals & human health sector, 46
radio astronomy sector, 47-8
service sector, 50
textile, clothing and footwear sector, 74-5
training, 33
reviews, property, 2, 104
risk
assessment & audit, 100-1
management program, 96
rural & regional sustainability, 61
S
safety & people development, 97-9
salinity management, 4, 60
animal production from saline land, 75
rice growing areas, 69
use of tree belts, 69
Scalable Vector Graphics Viewer (SVGV), 41
Scientriffic magazine, 103
Scinema, 102
Sector Advisory Committees (SACs), 28
sector profile, 28
security policy, 104
Service Sector, 49-50
charter, 7
committees, 154-5
grievance procedures, 173
standards, 8, 91
SICOR company, 39
SiroLock, 74
soils, managing root disease, 66
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staff
conduct, 8
enterprise bargaining, 101
executive
changes, 1
management council & executive team, 93
human resources management, 97
OH&S, 97-8
safety & people development, 97-9
senior staff & addresses, 13-6
staffing priorities, 89
structure, management & staff, 9
standards see Measurement Standards Sector
stored grain research, 66
strategies
strategic action plan, 3, 88
strategic planning & evaluation, 104-5
strategic priorities, 89
strategic response see individual sectors
structure, management & staff, 9
Student Research Scheme, 103
sugar industry, operations research, 65
sultanas, new variety, 71
support
activities, 97-106
systems, 94-106
System for Quick Image Search (SQIS), 50
vegetation, decline of native vegetation, 57
Viator, 50
viticulture, 4
posts for vineyard trellises, 69
W
wasps, use for biological control, 70
water
aquaculture industry, 63
aquatic weeds, 58
Australia’s Oceans Policy, 62
control of waterlogging, 69
estuary health, 63
field crops sector, 65-6
groundwater
nitrate contamination, 65
remediation, 61
rice fields, 69
irrigation efficiency, 61
lucerne, value in water use, 65
marine pests, 63
national water reform, 61
salinity management, 60
soil & groundwater remediation, 61
special projects, sustainable urban water
systems, 78
urban water initiative, 37
water & sediment quality, 61
weeds, release of rust fungus, 57
biocontrol agents, 72
welding technology, 43
wheat, resistance to BYDV, 65
wood see Forestry, Wood & Paper Industries Sector
wool
easycare garments, 74
fining the wool clip, 74
improved oral delivery of therapeutics to
sheep, 75
international projects, 75
medical sheepskins, 74
Woolmark Company, 74
Wulguru Group, 67
T
taxation, compliance behaviour of individuals, 50
Team Australia, 3
termite management breakthrough, 37
Textile, Clothing & Footwear Sector, 73-5
committees, 163
tourism, Tourism Futures Simulator, 58
training
people development, 98-9
research training, 33, 103
transport innovations, 3, 4
comparison of fuels, 52
intelligent freight transport, 37
special project, low emission transportation
technologies, 76
TRIPS, electronic travel planner, 50
trust funds, 175-7
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